RBC Receives Regulatory Approval to Proceed with Acquisition of HSBC Canada

Royal Bank of Canada (RBC), one of Canada's biggest banks, and among the largest in the world based on market capitalization, announced on Thursday (December 21, 2023) that the federal Minister of Finance has approved it to proceed with the acquisition of HSBC Bank Canada ("HSBC Canada"). The deal will strengthen RBC's premium domestic business and position on the global stage, the Canadian bank stated.

Dave McKay, president and CEO at RBC, said: "I want to thank the Department of Finance, OSFI, and the Competition Bureau for their diligent work in reviewing this important acquisition. The acquisition of HSBC Canada is good for the country and Canadians. Not only will this keep more of Canada's financial sector under Canadian ownership, but it will also allow more Canadians to access the global economy by combining the strength and scale of RBC with the international banking capabilities and financial products that HSBC Canada is known for."

According to the agreement reached last November​, HSBC Overseas Holdings (UK) Limited, a wholly-owned subsidiary by HSBC Holdings plc, agreed to sell its banking business in Canada for CA$13.5bn (US$10.1bn) to RBC. In addition, RBC plans to acquire all the preferred shares and the outstanding subordinated debt issued by HSBC Canada and held by the HSBC Group for around CA$1.1bn (US$0.8bn) and CA$1.0bn (US$0.7bn), respectively.

The transaction is expected to close in the first quarter of 2024.