Canada Antitrust Agency Clears RBC Deal for HSBC's Canada Unit

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 [e-mail]

(END) Dow Jones Newswires

September 01, 2023 09:16 ET (13:16 GMT)

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