National Bank’s proposed $5-billion acquisition of Canadian Western Bank has cleared a major hurdle.

The Competition Bureau has approved the planned all-stock transaction, the banks announced Thursday.

“We are pleased that the Competition Bureau has concluded its review of this transaction, and to have its approval to bring together these two great banks which have a complementary footprint in personal and commercial banking,” said Laurent Ferreira, Montreal-based National’s president and CEO.

Announced in June, the proposed deal has widespread commercial real estate implications in terms of National Bank expanding its geographical footprint and investors gaining greater access to capital, among other factors.

“Once the remainder of the regulatory approvals processes are complete, we look forward to joining forces with the CWB team so that together, we deliver a stronger banking choice for all Canadians and Canadian businesses,” added Ferreira.

The agreement calls for National to maintain Edmonton-based CWB’s office and add two members from the target bank to its board.

Chris Fowler, CEO of CWB, called the Competition Bureau’s endorsement “a major step forward.”

“This decision preserves the tremendous value the transaction represents for our clients, teams, communities and shareholders,” said Fowler.

In conjunction with the acquisition, National raised $1.5 billion through a public offering and concurrent private placement in June.

Meanwhile, the Caisse de dépôt et placement du Québec (CDPQ) agreed to invest $500 million in National.

If all goes according to plan, CDPQ will become National’s second-largest shareholder.

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