NEW YORK (TheStreet) -- Canadian Imperial Bank of Commerce (CM) - Get Report stock is declining 2.20% to $75.42 on heavy trading volume on Wednesday afternoon after the Toronto-based bank agreed to acquire PrivateBancorp (PVTB) in a cash and stock deal valued at $3.8 billion.

Shares of PrivateBancorp are soaring 23.21% to $44.27 this afternoon, also on heavy trading volume.

CIBC agreed to pay $18.80 in cash and 0.3657 of its common shares for each share of Chicago-based PrivateBancorp.

"Acquiring PrivateBancorp accelerates our strategy of building a strong, innovative and client-focused bank by creating opportunities to bank across borders for our Canadian clients, and offering more services to our private wealth clients at Atlantic Trust," CIBC CEO Victor Dodig said in a statement.

The transaction, which is subject to regulatory and shareholder approvals, is expected to close in the 2017 first quarter.

So far today, 3.54 million shares of CIBC have been traded, compared with its average daily volume of 287,086 shares. About 16.01 million shares of PrivateBancorp have exchanged hands today, significantly higher that its average daily volume of 642,029 shares.

Separately, CIBC has a "hold" rating and a letter grade of C at TheStreet Ratings because of the company's revenue growth, solid stock price performance and increase in net income, which offsets disappointing return on equity.

You can view the full analysis from the report here: CM

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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