- Royal Bank of Canada (RY) has agreed to acquire HSBC Bank Canada
- RBC will acquire 100 per cent of the common shares of HSBC Canada for an all-cash purchase price of $13.5 billion
- The acquisition will position RBC as the bank of choice for commercial clients with international needs, newcomers to Canada and affluent clients
- Royal Bank of Canada offers personal and commercial banking, wealth management services, insurance, corporate banking, and capital markets services
- Royal Bank of Canada (RY) opened trading at C$98.64
Royal Bank of Canada (RY) has signed an agreement to acquire HSBC Bank Canada.
Under the terms of the agreement, RBC will acquire 100 per cent of the common shares of HSBC Canada for an all-cash purchase price of $13.5 billion.
Dave McKay, President & CEO of RBC, commented on the acquisition.
“HSBC Canada offers the opportunity to add a complementary business and client base in the market we know best and where we can deliver strong returns and client value, given our financial strength and award-winning service. This also positions us as the bank of choice for commercial clients with international needs, newcomers to Canada and affluent clients who need global banking and wealth management capabilities. It will help us better serve global clients looking to invest and grow in Canada.”
Neil McLaughlin, Group Head, Personal & Commercial Banking, RBC, added,
“This acquisition builds on our core domestic retail business and expands our international product capabilities,” said “We look forward to welcoming HSBC Canada’s talented employees after the transaction closes and supporting them as they continue to serve their clients. With strong cultural and risk alignment and a shared focus on client service, we can build together on HSBC Canada’s leading international products.”
HSBC Canada has $134 billion in assets as of September 30, 2022.
Closing is expected by late 2023, subject to regulatory approval.
Royal Bank of Canada is one of the two largest banks in Canada. It is a diversified financial services company offering personal and commercial banking, wealth management services, insurance, corporate banking, and capital markets services.
Royal Bank of Canada (RY) opened trading at C$98.64.