Advertisement
HSBC to sell Canadian business to Royal Bank of Canada for US$10 billion
- HSBC announced a strategic review of the Canadian business in October
- Sale comes as bank is facing pressure from its biggest shareholder, Ping An Insurance, to spin off its Asian business
2-MIN READ2-MIN
Chad Brayin London
HSBC has agreed to sell its Canadian business to Royal Bank of Canada (RBC) for C$13.5 billion (US$10 billion) in cash as the lender places greater emphasis on Asia and operations that play into its strategy of connecting wealth and businesses globally.
Toronto-based RBC will acquire 100 per cent of the issued common equity of HSBC Canada, as well as about C$1.1 billion in preferred shares and C$1 billion in outstanding subordinated debt issued by the business.
“HSBC Canada is a high performing and profitable bank, with strong leadership and exceptional people,” HSBC’s CEO Noel Quinn said in a statement.
Advertisement
“We decided to sell following a thorough review of the business, which assessed its relative market position within the Canadian market and its strategic fit within the HSBC portfolio, and concluded that there was a material value upside from selling the business.”
The transaction, which is subject to regulatory and government approvals, is expected to be completed in late 2023. It followed the bank announcing a strategic review of the Canadian business in October.
05:25
HSBC’s break-up dilemma: why bank’s largest shareholder is pushing for change
HSBC’s break-up dilemma: why bank’s largest shareholder is pushing for change
“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,” Dave McKay, RBC’s president and CEO, said in a statement.
Advertisement
Advertisement
Select Voice
Select Speed
1.00x