Royal Bank of Canada (RBC) has entered into an agreement to acquire HSBC Bank Canada, a premier Canadian personal and commercial bank with approximately 130 branches across the country, RBC announced November 28 in a release.
RBC will acquire 100 per cent of the common shares of HSBC Canada for an all-cash price of $13.5 billion, said to be the largest acquisition in Canadian banking history.
All of HSBC Canada's earnings from June 30 2022 through to close will accrue to RBC.
"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," said Dave McKay, president & CEO, RBC. "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."
"This acquisition builds on our core domestic retail business and expands our international product capabilities," said Neil McLaughlin, group head, personal and commercial banking, RBC.
HSBC Canada has $134 billion in assets as of September 30, 2022, approximately 130 branches and 4,200 full-time equivalent employees.
Closing of the deal is expected by late 2023 subject to customary closing conditions including regulatory approvals.