Royal Bank of Canada has agreed to buy the Canadian arm of British-based HSBC for $13.5-billion — cash.
It’s the most expensive deal ever for a Canadian bank purchasing another operating in this country.
RBC’s chief executive officer says the transaction will help the bank better serve global clients looking to invest and grow in Canada.
”This also positions us as the bank of choice for commercial clients with international needs, newcomers to Canada and affluent clients who need global banking and wealth management capabilities,” Dave McKay said in a statement.
HSBC has been up for sale this year because the parent company has been facing pressure from its largest shareholder, to increase returns.
It has been operating in Canada since 1981 and currently has about 130 branches and 4,200 employees.
Royal says it hopes to keep many of those workers.