Canada Antitrust Agency Clears RBC Deal for HSBC's Canada Unit
September 01 2023 - 8:31AM
Dow Jones News
By Paul Vieira
OTTAWA--Canada's antitrust watchdog said Royal Bank of Canada's
proposed $10.1 billion deal for HSBC Holdings' Canadian unit is
unlikely to deter competition in the banking sector.
The watchdog's finding was in a report issued Friday. The
Competition Bureau said its analysis will now go to the office of
Canada's finance minister, Chrystia Freeland. She will have final
say on whether the deal can proceed.
The deal, unveiled in November, would combine Canada's largest
and seventh-biggest banks, based on a measure of total assets.
"While certain evidence indicated that HSBC Canada was a
vigorous competitor and a material rival to Royal Bank in the offer
of particular financial services, the bureau found that HSBC
Canada's competitive impact was limited when compared to other
financial institutions," the antitrust agency said.
The bureau said the proposed deal is unlikely to result in a
marked reduction or prevention of competition in the banking
sector.
Dave McKay, RBC's chief executive, has previously said the bank
isn't aware of any concerns that regulators could raise with the
transaction.
Write to Paul Vieira at paul.vieira@wsj.com
(END) Dow Jones Newswires
September 01, 2023 09:16 ET (13:16 GMT)
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