A major American private equity firm is set to acquire Moneris, a leading Canadian payment processing company handling about one-third of the country’s payment transactions. Royal Bank of Canada and Bank of Montreal jointly announced the sale of Moneris to Francisco Partners for $2 billion, resulting in a positive market response with increased share prices for both RBC and BMO. RBC anticipates a post-tax gain of around $475 million from the transaction, while BMO expects $600 million.
Despite the financial gains, concerns have been raised by industry analysts regarding potential negative impacts on Canada’s digital sovereignty, particularly amidst the ongoing trade tensions with the U.S. Digital sovereignty refers to a nation’s ability to control its digital assets, a topic highlighted by AI Minister Evan Solomon in advocating for a sovereign digital economy free from external influence.
In a joint effort, numerous experts penned an open letter urging Prime Minister Mark Carney to safeguard Canada’s digital sovereignty from external pressures. Sharon Polsky, president of the Privacy and Access Council of Canada, echoed these concerns, emphasizing the potential risks of Canadians’ data falling into the hands of foreign governments and law enforcement agencies due to the Moneris deal.
The deal’s timing amid the trade war between Canada and the U.S. has raised further apprehensions about the potential misuse of transaction data for trade negotiation leverage. Colin Deacon, an Independent Canadian senator, also expressed worries about potential data sharing with the U.S. government and its implications on individual privacy and national security.
Both BMO and RBC declined to comment further on the sale, emphasizing Moneris’s commitment to serving Canadian businesses despite the ownership transition. Polsky highlighted the inadequacies in Canada’s privacy legislation, underscoring the urgent need for stronger protections to prevent data sharing under foreign pressure.
Canada has introduced Bill C-36, the Protecting Privacy and Consumer Data Act, aiming to enhance the country’s private sector privacy regulations and establish privacy as a fundamental right. However, critics like Polsky argue that current legislative efforts fall short in addressing the core issues of data retention and national sovereignty, leaving Canada trailing in digital privacy protection.
The sale of Moneris is pending regulatory approvals, including clearance under the Competition Act, and is expected to conclude by the end of the banks’ fiscal first quarter in 2027. Despite legislative efforts, concerns persist about Canada’s digital security and the need for robust measures to safeguard national sovereignty in the digital age.