HSBC Holdings announced the completion of the C$13.5 billion ($9.96 billion) sale of its Canadian unit, HSBC Bank Canada, to Royal Bank of Canada (RBC).
According to HSBC’s statement released on Friday, this transaction is expected to generate an estimated gain of $4.9 billion in the first quarter of 2024.
RBC, Canada’s largest bank, highlighted that the acquisition will strengthen its domestic operations and enhance its global standing.
Following the merger, HSBC Canada’s branches and offices will operate under the RBC brand starting Monday, April 1, as stated in a separate announcement by RBC.
Despite facing opposition from environmental and anti-monopoly groups, as well as conservatives concerned about industry consolidation and potential consumer fee hikes, this merger represents RBC’s largest deal.
Not since the early 1990s, when regulators blocked RBC’s attempt to acquire Bank of Montreal, has Canada seen banking sector deals of this magnitude.
