$13.5 billion CAD! Royal Bank of Canada completes the largest acquisition in history

HSBC Holdings announced that it has completed the sale of its Canadian subsidiary, HSBC Bank Canada, to Royal Bank of Canada for 13.5 billion Canadian dollars (equivalent to 9.96 billion US dollars) on Thursday. In a statement on Friday, HSBC Bank stated that this transaction is expected to boost its earnings to 4.9 billion US dollars in the first quarter of 2024. Royal Bank of Canada previously stated that this acquisition will merge the largest and seventh-largest banks in Canada, enhancing its domestic business and global presence. In another statement, Royal Bank of Canada mentioned that the branches and offices of HSBC Bank Canada will start operating as Royal Bank of Canada's business locations on April 1st. This is reported to be the largest merger for Royal Bank of Canada, overcoming opposition from environmental and anti-monopoly organizations as well as conservatives who expressed regret over the increasing concentration in the industry and potential higher costs for consumers. Since the regulatory authorities blocked Royal Bank of Canada's acquisition of Montreal Bank in the early 1990s, the Canadian banking industry has not attempted such a large-scale transaction