HSBC expects deal with RBC to close in early 2024 following federal approval
By The Canadian Press on December 22, 2023.
HSBC says it expects the sale of its Canadian operations to RBC to officially close in the first quarter of 2024 after the transaction passed its final hurdle on Thursday with the approval of Finance Minister Chrystia Freeland. The green light from Freeland came after the Competition Bureau approved the $13.5-billion takeover in September and carries conditions on RBC, including that none of HSBC Canada’s 4,000 employees be fired within six months of the closing date, or two years for front-line staff. Banking services must also continue to be provided at a minimum of 33 HSBC branches for four years. HSBC said in a brief update Friday that it and RBC continue to make progress on implementation of the transaction following the federal approval. Many had called for RBC’s takeover of HSBC Canada to be blocked, arguing it would decrease competition in what is already a heavily concentrated banking sector. RBC chief executive Dave McKay said in an interview Thursday that there is extensive competition in Canadian banking and that the deal would not lessen that in “any shape or form.” This report by The Canadian Press was first published Dec. 22, 2023. Companies in this story: (TSX:RY) 9-8
