BMO agrees to buy BNP Paribas' Bank of the West for $16.3 billion

Bank of Montreal agreed to buy BNP Paribas SA’s Bank of the West unit for $16.3 billion, extending its presence in key U.S. growth markets and giving the French lender a windfall before its new strategic plan.BMO will fund the transaction, which should add 1.8 million customers upon closing next year, in cash and mainly with excess capital, according to a statement on Monday.

Bloomberg had previously reported the Canadian bank’s interest.For BMO, the transaction -- its largest acquisition ever -- extends its retail footprint into the western U.S. while also bulking up its already-sizable commercial business.  

The bank,