Completion of HSBC’s Sale of Canadian Unit to RBC

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.

Completion of HSBC's Sale of Canadian Unit to RBC
RBC’s acquisition of HSBC Canada aims to bolster domestic operations and global presence.

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.

Completion of HSBC's Sale of Canadian Unit to RBC
The merger marks RBC’s largest deal, overcoming opposition and signaling significant banking sector activity in Canada.

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.

Sajda Parveen
Sajda Parveen
Sajda Praveen is a market expert. She has over 6 years of experience in the field and she shares her expertise with readers. You can reach out to her at [email protected]
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