RBC’s planned acquisition, which is expected to complete in late 2023, would expand its base of business clients and beef up its retail presence. RBC, already Canada’s largest bank by assets, would around 130 new branches, including approximately 45 on British Columbia’s West Coast.
But that’s not all.
In a statement yesterday, HSBC said that if the deal pushes through, it will result in an indirect change of control of HSBC Global Asset Management (Canada) Limited.
A wholly-owned subsidiary of HSBC Canada, it manages and serves as the primary investment advisor for the HSBC Mutual Funds and HSBC Pooled Funds, which are sold only to investors as part of a discretionary investment management service.
If the deal closes, it would also be also an unusual domestic purchase for one of Canada’s major banks. With mergers in the country’s highly concentrated banking sector barred by regulations, Canada’s major lenders have shifted their emphasis in recent years to the United States.
