new-recommended-broker-banner new-recommended-broker-banner
Practice Stock Trading Your Capital Is At Risk

Great Western Bancorp Stock Rallies On First Interstate BancSystem Merger

Updated: 16 Sep 2021

Great Western Bancorp (NYSE: GWS) shares are rallying premarket on news that it will merge with First Interstate BancSystem (NASDAQ: FIBK), the parent company of First Interstate Bank.

Great Western Bancorp, the parent company of Great Western Bank, will join forces with FIBK in an all-stock transaction.

The combined holding company and bank will operate under the First Interstate name and brand, with the company’s headquarters remaining in Billings, Montana. The transaction is expected to take place during Q2 2022.

The companies said the merger will leverage the strength of both organizations, creating a “diversified, community-focused banking franchise” with a network of more than 300 branches across 14 states with assets totalling $32 billion. 

The deal will see GWB shareholders receive .8425 shares of FIBK Class A common stock for each GWB share they own. Thus, GWB shareholders will collectively own 43% of the combined company once the deal has concluded. The total transaction value based on closing share prices on September 15 is approximately $2 billion.

“We’re excited to join forces, and confident that both companies’ stakeholders will benefit from this partnership,” said Mark Borrecco, GWB President and CEO. 

“We’ll be able to offer customers access to additional branch locations and new products and services, provide new growth and professional development opportunities to our employees, deliver additional returns to our shareholders, and have an even greater impact on our communities,” added Borrecco.

GWB shares have climbed 12.4% to $32.15 following the news. 

Should You Invest in GWB Shares?

One of the most frequently asked questions we receive is, “what stocks are best to buy right now?” It's a wide-ranging question, but one that we have answered… Our AskTraders stock analysts regularly review the market and compile a list of which companies you should be adding to your portfolio, including short and longer-term positions. Here are the best stocks to buy right now

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 75 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .