Ongoing negotiations between Alberta’s ATB Financial and Toronto investment dealer Cormark Securities could create another significant acquisition in Canada’s rapidly consolidating financial sector, with sources familiar with the discussions valuing the potential deal at more than $35 million.
Such a deal would push the Edmonton-based provincial Crown corporation beyond Alberta’s energy sector into national investment banking and securities services.
Toronto-based Cormark operates as one of Canada’s last major independent investment dealers, providing financial services including research, trading, and investment banking to corporate and institutional clients. The employee-owned firm has an estimated $35 million in capital, with employee owners seeking a premium in any sale.
The two companies are still negotiating, and a deal may not be concluded, according to sources familiar with the matter.
The discussions come amid rapid consolidation in Canadian finance, as the need for greater scale to handle rising regulatory and technology costs drives the trend. Over the past 18 months, three major deals have reshaped the landscape.
Royal Bank of Canada completed its $13.5 billion acquisition of HSBC Canada in March last year, eliminating what was Canada’s seventh-largest bank. National Bank of Canada completed its acquisition of Canadian Western Bank for $5 billion in February this year. Investment dealers PI Financial and Echelon Wealth Partners merged in 2024 to form Ventum Financial.
Related:
- HSBC Completes $10B Sale of Canadian Unit to Royal Bank of Canada
- National Bank of Canada Secures Final Approval For $5 Billion Canadian Western Bank Acquisition
Industry experts say smaller financial institutions struggle to compete with the built-in advantages of larger players, including extensive branch networks, lower funding costs, and economies of scale in technology investments.
ATB Financial has used acquisitions to expand before. In 2024, it acquired BCV Asset Management, a Winnipeg fund manager overseeing $5.8 billion in client assets. Between 2018 and 2020, it acquired full control of investment bank AltaCorp Capital and renamed it ATB Capital Markets.
Cormark pitched itself to at least two other potential buyers — Raymond James and Canadian Western Bank — before opening talks with ATB, according to sources. National Bank’s acquisition of Canadian Western Bank in February eliminated one suitor.
Financier Eric Sprott founded the firm in 1981 as Sprott Securities, and employees rebranded it as Cormark in 2007 after Sprott departed to focus on commodities investing.
The consolidation trend sets off alarms about market concentration. “The continuing trend is worrisome … this is one less door that folks are able to knock on for things like small business financing,” said Keldon Bester, executive director of the Canadian Anti-Monopoly Project, referring to the National Bank-Canadian Western Bank deal in February.
Canada’s Big Six banks already control about 93% of banking assets in the country, the same share they held a decade ago, despite the recent mergers. Analysts attribute the financial sector’s concentration to government protectionist policies and the country’s small, dispersed population.
ATB Financial reported record revenue of $2.2 billion in fiscal 2025, up 8% from the previous year, driven by strong loan growth and capital markets performance. The Crown corporation contributed nearly $1.47 billion in shared value to Alberta through employee compensation, local contributions, and provincial payments.
For Cormark, the talks come during challenging market conditions. Declining deal activity among smaller public companies and a drought in initial public offerings pressure independent dealers’ revenues.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
