The Royal Bank of Canada (RBC) announced an agreement to acquire the United States operations of the British financial institution HSBC.
The RBC, one of Canada’s largest banking entities, said in a statement that it had obtained all of its peer’s shares for some US$9.919 billion.
RBC President and CEO Dave McKay said the purchase allows it to add a complementary business and customer base.
Likewise, McKay pointed out that this initiative positions his institution as the bank of choice for commercial clients with international needs, new residents in Canada and wealthy clients.
For his part, HSBC Group CEO Noel Quinn stressed that the sale makes strategic sense for both parties, stressing that RBC has taken the company to a higher level.
As of September 2022, HSBC had assets valued at US$98.453 billion, around 130 branches and 4,200 full-time employees.
Subject matter experts remarked that the price paid by RBC for the purchase of HSBC is the highest paid by a Canadian bank for the purchase of a financial institution in the country.