HSBC sells Canadian business to RBC for $10 billion

Nov 29 (Reuters) – Britain’s HSBC (HSBA.L) said on Tuesday it has agreed to sell its Canadian business to Royal Bank of Canada (RY. TO).

The deal is expected to close by the end of 2023 and will generate a pre-tax gain of $5.7 billion for HSBC, the bank said in a statement.

The sale comes amid HSBC’s strategy to focus resources on its core markets as its largest shareholder, Ping An of China, puts pressure on it to improve its performance.

The deal enables RBC to gain additional market share in its home market, adding 130 branches and more than 780,000 retail and business customers.

($1 = 1.3444 CAD)

Reporting by Iain Withers in London and Pushkala Aripaka in Bengaluru; Editing by Shinjini Ganguli and Sinead Cruise

Our Standards: Thomson Reuters Trust Principles.

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