RY

HSBC completes sale of Canadian unit to RBC

Credit: REUTERS/DADO RUVIC

Adds details and background from paragraph 3

March 29 (Reuters) - HSBC Holdings HSBA.L said it completed the C$13.5 billion ($9.96 billion) sale of its Canadian unit, HSBC Bank Canada, to Royal Bank of Canada RY.TO (RBC) on Thursday.

The transaction will result in the recognition of an estimated gain of $4.9 billion in the first quarter of 2024, HSBC said in a statement on Friday.

RBC previously said the acquisition, which merges Canada's biggest and seventh-biggest lenders, will boost its domestic business as well as its position on the global stage.

HSBC Canada's branches and offices will open for business on Monday, April 1 as RBC locations, RBC said in a separate statement.

The merger, RBC's biggest, overcame opposition from environment and anti-monopoly groups as well as conservatives, who lamented the increasing concentration of the industry and the possibility of higher fees for consumers.

Deals of this size in the banking sector have not been attempted in Canada since the early 1990s when RBC's bid for Bank of Montreal BMO.TOwas blocked by regulators.

($1 = 1.3551 Canadian dollars)

(Reporting by Jahnavi Nidumolu in Bengaluru; Editing by Subhranshu Sahu and Sohini Goswami)

((Jahnavi.Nidumolu@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.