LISTEN: PM Browne Welcomes $1.8 Billion Butterfield-CIBC Deal, Seeks local participation

Prime Minister Gaston Browne says the government will seek opportunities for local banks to participate in the proposed acquisition of CIBC Caribbean by Bermuda-based Butterfield, while the Antigua and Barbuda Workers’ Union has urged full protection of employees’ rights as the transaction moves forward.

Speaking on the Browne and Browne radio programme, Browne described the transaction as “somewhat of a merger rather than outright sale as in the case of Scotiabank” and said the government has already communicated its position to the parties involved.

“We have said to them, look, we’ll give them the approval, but we would like to have some opportunity for the local banks to participate,” Browne said.

He said Antigua Commercial Bank had expressed interest in participating in the new ownership structure if an opportunity becomes available.

Browne noted that Butterfield, which is headquartered in Bermuda and listed on the New York Stock Exchange, would have approximately US$29 billion in assets following the transaction and offer services beyond those typically available through domestic banks.

“We’re trying to see how we can position the local banks to participate, but again, we do welcome the merger that is taking place here,” he said.

The prime minister said CIBC is expected to retain a 22 per cent stake in the institution while Butterfield assumes majority ownership. He added that the transaction could take at least another year to complete.

His comments came a day after the Antigua and Barbuda Workers’ Union raised concerns about the implications of the proposed acquisition for employees.

The union, which represents CIBC Caribbean workers in Antigua and Barbuda, said any transfer of ownership must comply with local labour laws governing severance entitlements, continuity of service, collective bargaining rights and consultation obligations.

ABWU General Secretary David Massiah said amendments to the Labour Code provide that employees may become entitled to severance where there is a sale of assets, shares, transfer of undertaking or other disposal of a business to a successor employer.

According to the union, employees may elect either to accept severance from the predecessor employer or continue employment with the successor entity while preserving their accrued benefits, rights and continuity of service.

The union has called for workers to be formally advised of their statutory rights and options and has urged consultation and transparency throughout the transaction process.

Butterfield announced this week that it has agreed to acquire CIBC’s 91.7 per cent interest in CIBC Caribbean in a transaction valued at approximately US$1.8 billion. The deal remains subject to shareholder and regulatory approvals.

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