HSBC completes sale of Canadian unit to RBC

(Reuters) – HSBC Holdings said it completed the C$13.5 billion ($9.96 billion) sale of its Canadian unit, HSBC Bank Canada, to Royal Bank of Canada (RBC) on Thursday.

The transaction will result in the recognition of an estimated gain of $4.9 billion in the first quarter of 2024, HSBC said in a statement on Friday.

RBC previously said the acquisition, which merges Canada’s biggest and seventh-biggest lenders, will boost its domestic business as well as its position on the global stage.

HSBC Canada’s branches and offices will open for business on Monday, April 1 as RBC locations, RBC said in a separate statement.

The merger, RBC’s biggest, overcame opposition from environment and anti-monopoly groups as well as conservatives, who lamented the increasing concentration of the industry and the possibility of higher fees for consumers.

Deals of this size in the banking sector have not been attempted in Canada since the early 1990s when RBC’s bid for Bank of Montreal was blocked by regulators.

($1 = 1.3551 Canadian dollars)