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Canada  + Alberta & Prairies  + Cross Border News  + Ontario  + Pacific Canada  + Finance  | 
The federal government has approved Royal Bank of Canada's $13.5-billion acquisition of HSBC Canada. The deal has many real estate aspects.

Ottawa Approves RBC’s $13.5B Acquisition of HSBC Canada

The federal government has approved Royal Bank of Canada’s $13.5-billion acquisition of HSBC Canada.

The deal is the largest in RBC’s history and has widespread commercial real estate ramifications for the bank, its clients and its partners. Among the most notable aspects: A new global banking hub will be established in Vancouver, supporting 1,000 jobs and creating about 440 new positions, and RBC will maintain services at a minimum of 33 HSBC branches for the next four years. RBC will also provide $7 billion in financing for affordable housing projects.

In addition, RBC will waive fees for HSBC clients transferring mortgages to RBC, and provide additional retail lending support for the redevelopment of single-family homes into multi-family residential properties. RBC will also increase its client operations in Winnipeg and boost its workforce in the Manitoba capital by 10%.

Dave McKay, RBC’s president and CEO, called the deal good for the country and Canadians in a news release. He said the acquisition will keep more of Canada’s financial sector under Canadian ownership, allow more Canadians to access the global economy, and increase the strength and scale of RBC’s international banking capabilities.

The acquisition stemmed from London-based HSBC’s desire to exit the Canadian market. Most HSBC Canada branches are located in Vancouver and Toronto.

Photo:  Elena_Alex_Ferns / Shutterstock.com

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Inside The Story

Dave McKayRoyal Bank of Canada

About Monte Stewart

Monte Stewart serves as Content Director - Canada for Connect Commercial Real Estate. Based in Vancouver, British Columbia, Monte provides daily news coverage of major Canadian commercial real estate markets, including Vancouver, Toronto, Montreal and Calgary. He has written about the real estate sector for various media outlets and Avison Young since the early 2000s. In addition, he has covered sports, general news and business for several leading wire services and publications, including The Canadian Press, The Associated Press, The Calgary Herald, The Globe and Mail, Research Money, The Daily Oil Bulletin, Natural Gas World and The Toronto Star. Monte is active in his community as a youth basketball coach and raises funds for such charitable causes as Movember.

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  • ◦Financing
  • ◦People
  • ◦Policy/Gov't
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