TORONTO — 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).

Home Capital offers residential and non-residential mortgages and other financial services though its principal subsidiary, Home Trust Co.

Smith Financial is the family holding company of Stephen Smith, who is active in the Canadian financial space as executive chairman and co-founder of First National Finance Corp., chairman of Canada Guaranty Mortgage Insurance Co., and co-owner of Duo Bank of Canada.

This report by The Canadian Press was first published April 17, 2023.

Companies in this story: (TSX:HCG)

© 2023 The Canadian Press. All rights reserved., source Canadian Press DataFile