HSBC Overseas Holdings (UK) Limited, a wholly-owned subsidiary of HSBC Holdings plc, today announced it has agreed to sell its Canadian banking business to the Royal Bank of Canada (RBC).
According to the official announcement, the transaction is still subject to regulatory and governmental approval.
Under the terms of the transaction, RBC will acquire 100% of the issued common equity of HSBC Canada which is valued at CA$13.5 billion (US$10.1 billion). The deal is expected to be finalized by end of 2023.
Based on the financial data as of 30 September 2022, the deal will provide HSBC Group with a pre-tax gain of $5.7 billion.
HSBC Canada’s assets are valued at $94.6 billion. The company has 130 branches and 4,2200 employees.
Noel Quinn, the CEO of HSBC Group, commented:
I am pleased that we have reached an agreement with RBC. The deal makes strategic sense for both parties, and RBC will take the business to the next level. We look forward to working closely with RBC’s leadership team to ensure a smooth transition for our clients and colleagues. Our Group strategy is unchanged, and closing this transaction will free up additional capital to invest in growing our core businesses and to return to shareholders.
Dave McKay, the President & CEO at RBC, said.
HSBC Canada offers the opportunity to add a complementary business and client base in the market we know best and position us to be the bank of choice for commercial clients with international needs, newcomers to Canada and affluent clients who need global banking and wealth management capabilities. RBC is committed to ensuring clients get the highest value and best service.”
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.