Royal Bank of Canada (TSX:RY) completed the acquisition of HSBC Bank Canada from HSBC Overseas Holdings (UK) Limited.
As of May 1, 2023, Canada's competition authority is probing the transaction from lessening of competition perspective. The transaction is expected to complete in late 2023. As of May 25, 2023, the transaction is expected to close in the first calendar quarter of 2024. As of July 10, 2023, Canada's finance ministry has extended the consultation period for Royal Bank of Canada's CAD13.5 billion proposed acquisition of HSBC's Canadian unit. As of September 1, 2023, Competition Bureau determined that the proposed merger is not likely to result in a substantial lessening or prevention of competition under the Competition Act. The proposed transaction is also subject to an application process administered by the Office of the Superintendent of Financial Institutions (OSFI). On November 2, 2023, Canada's House of Commons lower chamber has asked Ottawa to reject Royal Bank of Canada acquisition of HSBC. Canada's Conservative party leader, has also called for the federal government to reject the deal. As of December 21, 2023, the transaction has been approved by the federal Minister of Finance. As of January 15, 2024, the transaction is expected to close on March 28, 2024, subject to the satisfaction of customary closing conditions. Conversion activities will begin once the transaction closes and will continue until April 1, 2024. HSBC Bank Canada?s branches and offices will open for business on Monday, April 1, 2024 as RBC locations.
J.P. Morgan Securities plc and HSBC Bank plc acted as financial advisers to HSBC Overseas Holdings (UK) Limited in connection with the transaction. Duncan Bellamy and Will Johnson of Allen & Overy acted as legal advisors to Royal Bank of Canada. Mitchell S. Eitel and Stephen M. Salley of Sullivan & Cromwell LLP acted as legal advisor to HSBC Overseas Holdings (UK) Limited. Ian Karet, Julian Cunningham-Day, Derek Tong, Cara Hegarty, Christopher Yip, George Yiend and Lynne Walkington of Linklaters LLP acted as legal advisor to HSBC Overseas Holdings (UK) Limited. Wachtell, Lipton, Rosen & Katz LLP and Blake, Cassels & Graydon LLP acted as legal advisors and RBC Capital Markets, LLC and Goldman Sachs & Co. LLC acted as financial advisors for Royal Bank of Canada.
Royal Bank of Canada (TSX:RY) completed the acquisition of HSBC Bank Canada from HSBC Overseas Holdings (UK) Limited on March 28, 2024.