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Canada Approves Royal Bank Deal for HSBC's Canada Unit

By Paul Vieira

 

OTTAWA--Canada late Thursday approved Royal Bank of Canada's proposed $10.1 billion deal for HSBC Holdings' Canadian unit, over a year after the two lenders unveiled the transaction.

Canadian Finance Minister Chrystia Freeland, who had final say over the transaction, said approval is subject to conditions, which cover employment levels in Canada, customer service, and financing to help construct affordable housing.

With approval, the RBC-led purchase becomes the largest-ever Canadian deal in domestic banking. For London-based HSBC, the sale was part of a broad restructuring to retrench from North America and parts of Europe, and focus more in Asia and the Middle East.

HSBC chief executive Noel Quinn had said the bank would consider a special dividend in 2024 once the sale was complete.

Write to Paul Vieira at paul.vieira@wsj.com

 
 

(END) Dow Jones Newswires

December 21, 2023 20:19 ET (01:19 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.

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