Competition Bureau clears EQ Bank takeover of PC Financial from Loblaw

A sign is displayed outside the headquarters of EQ Bank, a subsidiary of Equitable Group Inc, is seen in Toronto, Ontario.

TORONTO — The firm behind EQ Bank is a big step closer to buying PC Financial after the Competition Bureau, which says it’s looking to “disrupt” the financial sector, cleared the proposed takeover.

EQB Inc. and Loblaw Cos. Ltd. said Friday the approval represents an important regulatory milestone for the $800-million deal that was announced in December. 

The proposal would see EQ Bank take over PC Financials’ nearly 3.5 million customers and its retail pavilions and ATMs, while Loblaw would take a 16 per cent stake in the bank. EQ Bank would also become the exclusive financial partner of the Optimum loyalty program.

The deal still requires approval by the Office of the Superintendent of Financial Institutions and the minister of finance.

The announced approval from the Competition Bureau came a day after acting commissioner Jeanne Pratt said in a speech that the agency was especially looking to boost competition in the financial sector.

“In our view, disruption in this sector is not a luxury — it is a necessity,” she said in prepared remarks.

“The sector needs new players to shake things up and create an environment where innovators can challenge incumbents, and where incumbents innovate and adapt.”

Pratt said the financial sector, dominated by Canada’s five largest banks, is in need of competition to help drive affordability.

“Over time, the same structures that helped protect us during crises have also served to reinforce market concentration and barriers to innovative products and services.”

EB Bank, Canada’s seventh largest, has positioned itself as part of that added competition though this deal. Combining the two entities will create a more visible and stronger competitor, said EQ Bank chief executive Chadwick Westlake in an interview in February.

“This couldn’t be more on point from my perspective for competition.”

He said if the government was serious about boosting alternatives it would look to help accelerate approval and closing of the deal.

“If this moves along faster through the approval process, I think it’s even better for Canadians every day of the week.”

This report by The Canadian Press was first published March 6, 2026.

Ian Bickis, The Canadian Press.