The British banking giant HSBC announced on Tuesday the sale of its Canadian activities for C$13.5 billion, or US$10.1 billion, to Royal Bank of Canada (RBC).
“We have decided to sell following a comprehensive review, which assessed the company’s relative position in the Canadian market and its strategic fit with HSBC’s portfolio,” HSBC CEO Noel Quinn said in a statement.
The sale comes after HSBC, heavily Asian-focused but listed on the London stock exchange, faced calls from its largest shareholder, China’s Ping An Insurance group, to cut costs and put more resources into Asia.
HSBC will use the funds to invest in its core business and return cash to investorsspecified the statement of the entity.
Its divestment in Canada should be completed by the end of 2023.
For the RBC, “HSBC Canada offers the opportunity to add a complementary business and customer base in the market we know best and where we can deliver strong profitability and customer value,” said RBC Chairman and CEO Dave McKay, in a separate statement.
