HSBC expects later close of Canadian division sale to RBC

The Canadian Press

HSBC Holdings plc says the sale of its Canadian division to Royal Bank of Canada is going to take longer than first expected, but that the deal remains a key priority.

London-based HSBC says it now expects to complete the $13.5-billion transaction in the first quarter of 2024, rather than late this year as it guided when it announced the deal last November. 

The bank says the later close is to ensure a smooth transition, while several other recent bank deals have taken longer than expected amid heightened regulatory scrutiny including TD's still pending takeover of First Horizon. 

The Competition Bureau on Tuesday put out a call for input from the public on the RBC deal, seeking information that would help it assess potential impacts on competition from the deal.

Both the Competition Bureau and the Office of the Superintendent of Financial Institutions are reviewing the transaction, which requires approval from the finance minister.

HSBC Bank Canada says it had a record profit of $309 million before income tax expense in the first quarter, up $17 million from the same quarter last year, while its total assets were $123.3 billion at quarter end.

This report by The Canadian Press was first published May 2, 2023.

Competition Bureau seeks input on RBC's

proposed takeover of HSBC Bank Canada

The Canadian Press

The Competition Bureau has put out a call for information to help it review Royal Bank of Canada's proposed takeover of HSBC Bank Canada.

The agency says it's looking for input from market participants and Canadians on a range of areas including residential mortgages, personal and business lending and bank accounts.

It says the type of information it's interested to hear about include what kind of rivalry there is between RBC and HSBC as well as with other banks, what kind of effect the deal might have on price, quality or choice, and how easy it is to switch between banks.

The Competition Bureau says it is investigating whether the proposed deal is likely to result in a substantial lessening or prevention of competition.

RBC emerged in late November last year as the winning bidder for HSBC's Canadian division with a $13.5 billion deal.

Both the Competition Bureau and the Office of the Superintendent of Financial Institutions are reviewing the transaction, which requires approval from the Minister of Finance.