Home Capital deal to be bought by Smith Financial clears key regulatory hurdle

Home Capital Group Inc. says its deal to be acquired by Smith Financial Corp. has cleared a key regulatory hurdle.

The mortgage lender says the Commissioner of Competition has issued a "no-action letter" in respect to the deal that values the company at $1.7 billion.

Smith Financial announced in November 2022 that it would pay $44 in cash per share for the shares in Home Capital it did not already own.

The agreement, which was approved by shareholders in February, remains subject to regulatory approvals under the Bank Act (Canada) and the Trust and Loan Companies Act (Canada).