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TORONTO — EQ Bank owner Equitable Group Inc. said Tuesday it has closed its takeover of Concentra Bank in a deal valued at $495 million.

The takeover of Concentra boosts Equitable's assets under management base by $13.6 billion to help it compete, said chief executive Andrew Moor.  

"Banking is a bit of a game of scale, especially in this digital world. So when we put Equitable and Concentra together we will be the seventh largest bank in Canada. That's a pretty meaningful jump."

Concentra operates under the Wyth Financial brand, and also has a Trust division that provides services largely to credit unions with $38.6 billion in assets under administration.

Equitable has been talking to numerous credit unions since announcing the deal and will be looking to expand its services to the sector, including syndicating loans, supporting registered savings businesses and advisory services, said Moor. 

"There's a wide range of activities that we are deeply enmeshed with the credit union world and I'm looking forward to trying to build those capabilities."

Along with added assets, the takeover of Concentra adds around 400 staff to bring Equitable's total employees to about 1,800. 

With the deal closed, Wyth operations will be replaced by EQ Bank as the single digital platform. 

Overall, Equitable said the deal brings its direct and indirect client total to more than five million.

The Credit Union Central of Saskatchewan had been the largest shareholder of Concentra before the sale at about 84-per-cent ownership. 

This report by The Canadian Press was first published Nov. 1, 2022.

Companies in this story: (TSX:EQB)

Ian Bickis, The Canadian Press