HSBC Holdings plc today released an update on the sale of its Canadian business (HSBC Canada) to Royal Bank of Canada (RBC), subject to regulatory and government approvals.
On December 21, 2023 the Canadian Federal Government’s Minister of Finance approved the sale, with this approval permitting the transaction.
HSBC and RBC continue to make progress on the implementation and the transaction is expected to close in the first quarter of 2024. HSBC remains committed to consider paying a special dividend of $0.21 per share as a priority use of the proceeds of this sale in the first semester of 2024.
Under the terms of the deal announced in November 2022, RBC will acquire 100% of the issued common equity of HSBC Canada for a cash consideration of CA$13.5 billion (US$10.1 billion). In addition, RBC will acquire all of the preferred stock and outstanding subordinated debt issued by HSBC Canada and held by the HSBC Group for approximately CA$1.1 billion ($0.8 billion) and 1.0 billion .CA$ ($0.7 billion), respectively.