HSBC to sell its Canada business to Royal Bank of Canada for $10bn

HSBC intends to sell its Canadian banking operations to Royal Bank of Canada (RBC) for a cash consideration of $10.1 billion, subject to regulatory and governmental approvals.

HSBC sells Canadian operations to RBC

RBC will acquire 100% of the outstanding common stock of HSBC Canada. The company will also purchase all preferred stock and subordinated notes issued by HSBC Canada and held by the HSBC Group for an additional $1.5 billion.

The transaction is expected to close in the second half of 2023.

HSBC considers ‘relatively low’ market share and ability to invest in market expansion in light of opportunity, following strategic review of operations in Canada with over 130 branches and over 780,000 retail and commercial customers said he did. Other markets have concluded that the best course of action is to sell the business.

Noel Quinn said: , CEO of HSBC Group.

Speaking of reaching an agreement with RBC, Quinn added that the transaction “makes strategic sense for both parties.”

Our group strategy remains unchanged and completing this transaction will free up additional capital to invest in growing our core businesses and return to our shareholders.