Royal Bank of Canada signs deal to buy HSBC Canada for $13.5 billion

Royal Bank of Canada has signed a deal to acquire HSBC Bank Canada for $13.5 billion in cash.

RBC chief executive Dave McKay says the deal positions RBC 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.

Global banking giant HSBC Holdings Plc said earlier this year that it was reviewing strategic options for its Canadian subsidiary including the possible sale of the operations.

HSBC Canada has approximately 130 branches and 4,200 full-time equivalent employees.

RBC says it expects to close the deal by late 2023 subject to customary conditions including regulatory approvals.

Under the agreement, all of HSBC Canada’s earnings from June 30, 2022, through to the closing of the deal will accrue to the Canadian bank.