HSBC sale delayed
The Canadian Press – May 2, 2023 / 9:14 am | History: 424569
Photo: The Canadian Press
HSBC Holdings plc says the sale of its Canadian division to the Royal Bank of Canada will take longer than initially expected, but that the deal remains a key priority.
London-based HSBC now expects to close the $13.5 billion transaction in the first quarter of 2024, rather than later this year as envisaged when the deal was announced last November.
The bank says the later closing is designed to ensure a smooth transition, while several other banking transactions have recently taken longer than expected due to tightening regulators, including TD’s pending acquisition of First Horizon.
The competition bureau issued a call for public comment on the RBC deal on Tuesday, seeking information that would help it assess the deal’s potential impact on competition.
Both the Competition Bureau and the Office of the Superintendent of Financial Institutions are reviewing the transaction, which requires the Treasury Secretary’s approval.
HSBC Bank Canada said it posted record first-quarter profit of $309 million before income taxes, up $17 million from the year-ago quarter, while total assets at the quarter-end were $123.3 billion.
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