Energy company ATB stays dedicated to energy sector following Cormark acquisition, according to CEO's statements
In a strategic move aimed at bolstering its capital markets presence, ATB Financial, an Alberta Crown corporation, has announced the acquisition of independent investment bank Cormark Securities. The terms of the deal, however, remain undisclosed.
Curtis Stange, the president and CEO of ATB Financial, expressed his optimism about the growth of the Canadian economy, particularly in Western Canada, and saw the acquisition as a strategic step towards positioning ATB to benefit from an increasing focus on nation building and self-sufficiency given the changing international trade landscape.
The integration of Cormark's experienced teams, systems, and research infrastructure into ATB Capital Markets is expected to elevate ATB's scale and expertise in serving mid-cap, emerging growth clients, and institutional investors. This move will create a full-service investment banking platform with broader product coverage, including investment banking, corporate banking, equities, equity research, fixed income, currencies, and commodities.
The acquisition is anticipated to strengthen ATB's presence nationally across Canada and into the U.S., accelerate its growth strategy, and enable it to attract top talent while delivering deeper value to clients.
One of the key benefits of this acquisition for the Canadian economy, particularly the energy industry, is the enhanced ability to provide capital market services that support economic growth, including in energy. ATB Financial has publicly affirmed its strong and ongoing commitment to the energy sector, which is especially vital to Western Canada. The corporation allocates a meaningfully higher portion of its balance sheet to energy-related assets compared to other Canadian banks, demonstrating its strategic prioritization of supporting this industry.
Cormark Securities, with offices in Toronto and Calgary, brings complementary sectors to the table. While ATB focuses on energy and diversification, Cormark has a successful mining business. The client base of Cormark Securities is quite diversified, similar to ATB.
Curtis Stange, in a Tuesday interview with BNN Bloomberg, affirmed that the acquisition of Cormark Securities was something that was in ATB's future and that negotiations had been ongoing for 8 to 12 months. Stange also stated that the flow of capital and bringing buyers and sellers together in the sectors that ATB and Cormark are focused on will be beneficial for the Canadian economy.
This expansion enhances Canada’s capital markets infrastructure, facilitates financing and investment, especially in energy, and reinforces Western Canada’s economic development. The combination of Cormark with ATB's capital markets business has delivered results that ATB is "quite pleased" with.
[1] ATB Financial press release [2] Cormark Securities press release [3] BNN Bloomberg interview with Curtis Stange [4] Financial Post article [5] Globe and Mail article
- The acquisition of Cormark Securities by ATB Financial, as mentioned in the BNN Bloomberg interview with Curtis Stange, is anticipated to bring about benefits for the Canadian economy, particularly in the energy and mining sectors, by enhancing the flow of capital and facilitating financing and investment.
- ATB Financial's expansion through the acquisition of Cormark Securities, as reported in various press releases and articles, including the Financial Post and the Globe and Mail, positions the corporation to provide crucial capital market services that support economic growth, especially in the energy sector, which is vital to Western Canada.
- With the integration of Cormark Securities' experienced teams, systems, and research infrastructure into ATB Capital Markets, as explained in ATB Financial's press release, the combined entity will create a full-service investment banking platform with broader product coverage, including investment banking, corporate banking, equities, equity research, fixed income, currencies, and commodities, thereby strengthening Canada's capital markets infrastructure and reinforcing economic development, especially in Western Canada.
