Statement on the sale of HSBC Bank Canada to the Royal Bank of Canada

November 29, 2022 - Ottawa, Ontario - Department of Finance Canada

The Department of Finance Canada today issued the following statement:

“Today HSBC Holding plc and the Royal Bank of Canada (RBC) have announced that they have concluded an agreement for the sale of HSBC Bank Canada (HSBC) to RBC, subject to the necessary regulatory approvals.

“The Office of the Superintendent of Financial Institutions (OSFI) will administer the application process and provide a recommendation to the Minister of Finance.

“The Competition Bureau, under the Competition Act, will also review the transaction.

“As stipulated in the Bank Act, all acquisitions and amalgamations in Canada’s banking sector are subject to the approval of the Minister of Finance, who must take into account all matters she considers relevant.

“For further clarity, in assessing a transaction, the Minister of Finance may take into account such factors as the rights and interests of consumers and business customers; the impact of the transaction on the level of competition in the sector; its consequences for the stability and integrity of the financial sector and public confidence in it. The Minister of Finance has the authority to impose any terms and conditions and to require any undertaking that she considers appropriate.

“The Minister of Finance’s decision will be informed by all required regulatory review processes.”