Ottawa: Royal Bank of Canada has agreed to buy the Canadian arm of multi-national bank HSBC, a premier Canadian personal and commercial bank, for $13.5 billion in cash.

Under the terms of the agreement, RBC will acquire 100% of the common shares of HSBC Canada for an all-cash purchase price of $13.5 billion. All of HSBC Canada’s earnings from June 30, 2022 through close will accrue to RBC1.

“HSBC Canada offers the opportunity to add a complementary business and client base in the market we know best and where we can deliver strong returns and client value given our financial strength and award-winning service,” said Dave McKay, President & CEO, RBC.

He said, “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. It will help us better serve global clients looking to invest and grow in Canada.”

In a statement, HSBC bank said that it has $134 billion in assets as at September 30, 2022, approximately 130 branches and 4,200 full-time equivalent employees.

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