RBC Completes HSBC Canada Acquisition
(2 April 2024 – Canada) Royal Bank of Canada (RBC) has completed its C$13.5 billion acquisition of HSBC Bank Canada, merging Canada's largest and seventh-largest lenders.
RBC states that the acquisition will enhance its domestic business as well as its position on the global stage. A deal of this magnitude has not been attempted since RBC's bid for Bank of Montreal was rejected by regulators in the 1990s.
RBC's biggest merger to date successfully overcame opposition from environment and anti-monopoly groups as well as conservative government members who railed against rising financial services concentration which could lead to lower competition and higher fees for customers.
“With a material proportion of FX customers across Spot FX, Forward FX and FX Options according to East & Partners latest Business FX Canada research, HSBC was a direct competitor outright to RBC for Business FX customers” commented East & Partners Global Head of Markets Analysis, Martin Smith.
“How will TD, Bank of Montreal, Scotia Bank, CIBC and Citi respond to the dominant presence of RBC’s greatly expanded business banking presence?” Smith added.
Subscribe