RBC’s Acquisition of HSBC Unit Gets Green Light from Canadian Competition Bureau
The Canadian Competition Bureau approved its proposed $10 billion deal to acquire the domestic unit of HSBC.
Experts believe the acquisition would go a long way in consolidating RBC’s position in Canada’s concentrated banking market – where the top six lenders control almost 80% of the country’s banking assets – further cementing their place as the among the country’s leading financial institutions.
Joshua Krane, Lawyer at McMillan, was quoted as saying: “Typically the bureau’s reports are not as positive as the one that was released today … That’s a good sign for RBC.”
In reaction to the deal, RBC’s top chairman and CEO Dave McKay, expressed his excitement and optimism. “This transaction is a significant milestone for RBC and we are delighted to have had the support and approval of the Competition Bureau,” said McKay.
The deal is expected to be completed by the first quarter of 2024 and it is estimated to further increase RBC’s footprint in the country – both economically and competitively.