A PYMNTS Company

Canada’s Watchdog Is Probing Smith Financial’s Bid For Home Capital

 |  April 4, 2023

On Tuesday, the antitrust regulator in Canada announced that it is conducting a review of the possible acquisition of Canadian lender Home Capital by Smith Financial, a private company in the same industry.

A representative from the Competition Bureau stated in an email to Reuters that they are examining the possible purchase of Home Capital Group by Smith Financial Corporation.

Read more: Canada & Germany Clear Teledyne Financial Acquisition

Home Capital, rescued by Warren Buffett’s Berkshire Hathaway five years ago, announced in November it would be taken private by Smith Financial in a C$1.7 billion ($1.27 billion) deal. Canada’s housing market was slowing due to a sharp rise in interest rates after exponential price growth during the pandemic.

Smith Financial is controlled by Stephen Smith, the co-founder of Home Capital’s larger rival First National Financial and a top shareholder of lender EQB.