RBC will acquire 100% of the common shares of HSBC Canada for an all-cash purchase price of $13.5 billion. In addition, RBC will acquire all the preferred shares and the outstanding subordinated debt issued by HSBC Canada and held by the HSBC Group for approximately CA$1.1bn and CA$1.0bn, respectively. All of HSBC Canada’s earnings from June 30, 2022 through close will accrue to RBC and the transaction is expected to complete in late 2023.
The acquisition will enhance RBC’s competitiveness on the global stage without compromising Canadians’ access to a competitive, diverse home market. The financial sector is highly competitive in Canada, with 50 banks and hundreds of credit unions and fintechs competing to serve Canadians. HSBC Canada accounts for around 2% of Canadian deposits and mortgages.
Allen & Overy has a market leading financial services M&A practice with particular expertise in the banking sector. The Allen & Overy team was led by financial services M&A partner Duncan Bellamy and assisted by associate Will Johnson.
Blake Cassels & Graydon and Wachtell Lipton advised RBC on Canadian and US law.
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