Canada Approves RBC’s HSBC Acquisition Amid Job Commitments and Criticisms
The Finance Department of Canada announced the approval of Royal Bank of Canada’s (RBC) acquisition of HSBC Holdings’ Canadian operations, with conditions aimed at fostering economic growth. RBC commits to establishing a global banking hub in Vancouver, supporting over 1,000 jobs and adding 440 net new jobs in British Columbia. The C$13.5 billion deal received approval from Canada’s Competition Bureau, despite concerns about reduced competition among major banks. Critics, including Conservative party leader Pierre Poilievre, raised affordability concerns, urging Ottawa to reject the agreement.
RBC anticipates the transaction’s completion in Q1 2024. HSBC, having over 130 branches and 780,000 clients in Canada, aligns its strategy with a global footprint reduction, focusing on the Chinese market.
MeanHSBCwhile, South Korea’s financial watchdog recommends fines for HSBC Holdings and BNP Paribas for alleged “naked short selling,” illegal in the nation. The move highlights international regulatory scrutiny on financial institutions’ practices.
