RBC will acquire 100% of the issued common equity of HSBC Canada. The firm will also buy all the preferred shares and the outstanding subordinated debt issued by HSBC Canada and held by the HSBC Group for an additional $1.5 billion.
The transaction is expected to complete in late 2023.
HSBC says that following a strategic review of its business in Canada, where it has more than 130 branches and over 780,000 retail and commercial customers, it considered its “relatively low” market share and its ability to invest in market expansion in the context of opportunities in other markets, and came to the conclusion that the best course of action was to sell the business.
