Canadian Imperial Bank of Commerce
(CIBC) is selling its U.S. asset management arm to Fahnestock Viner Holdings
. The deal puts a $257 million price tag on CIBC Oppenheimer. CIBC World Markets is not a part of the deal which is expected to close in January.
Fahnestock will pick up $8.7 billion of assets under management at Oppenheimer, which is not related to MassMutual's OppenheimerFunds unit. CIBC purchased the unit in 1997 as a way to break into the U.S. retail brokerage business.
As a part of the deal CIBC picks up an option to buy up to 35 percent of Fahnestock's issued shares. This is the third time that CIBC has unloaded a non-core business in this type of deal. Two months ago the firm made a similar deal with Barclays Bank as a way to unload its Caribbean business and two years ago it sold its property casualty business in a similar deal.
Stay ahead of the news ... Sign up for our email alerts now