HSBC to Sell Canadian Arm for $10.1 Billion
Royal Bank of Canada said it would pay US$10.1 billion for HSBC Holdings PLC's Canadian operations, a move meant to position Canada's biggest bank to expand during an expected immigration surge. HSBC, a London-based bank with a huge Hong Kong presence, serves more than 780,000 customers through 130 branches in Canada. As part of the deal, it will refer clients who are moving to Canada to RBC, said Dave McKay, RBC's chief executive. Canada's government has said it expects to boost immigration to 500,000 people a year by 2025, up from 405,000 last year.