After a year of considering the matter, Ottawa finally approved the Royal Bank of Canada’s (RBC) takeover of HSBC Canada on Thursday evening after securing job creation commitments and a $7 billion donation for affordable housing.
• Also read: RBC is acquiring HSBC Canada for $13.5 billion
In addition to integrating HSBC Canada’s operations into its group, RBC plans to open a global banking hub in Vancouver that will employ more than 1,000 people, including 440 new jobs, the finance minister’s office announced. , Chrystia Freeland, announced the green light for the transaction.
Among other things, RBC must create 100 jobs at its customer service center in Winnipeg. The bank also committed to continue offering banking services in at least 33 HSBC branches for at least four years and not to increase certain banking fees for HSBC customers for 18 months.
Even more unusually, the government and the company announced that the agreement includes a $7 billion donation from RBC for affordable housing construction, which will help build 25,000 apartments across the country.
$13.5 billion
RBC’s acquisition of HSBC Canada – the Canadian subsidiary of British giant HSBC – announced in November 2022 was valued at $13.5 billion.
The acquisition includes the transfer of more than 4,000 HSBC employees to RBC and 120 bank branches across Canada. HSBC Canada had almost 800,000 Canadian customers.
RBC sees the purchase of HSBC above all as an opportunity to position itself on the international market.
“We will be able to offer our customers an enhanced banking experience, including new international products and new digital capabilities to help them achieve their financial goals,” Neil McLaughlin, group head of banking services, said in a press release Companies at RBC.