Allen & Overy acted for RBC on acquisition of HSBC Canada
Allen & Overy advised RBC on acquisition of HSBC Canada. RBC will pay $13.5 billion in cash to acquire 100 percent of HSBC
Allen & Overy acted for RBC on acquisition of HSBC Canada
Allen & Overy advised RBC on acquisition of HSBC Canada. RBC will pay $13.5 billion in cash to acquire 100 percent of HSBC Canada's common shares.
Furthermore, RBC will possess all of HSBC Canada's preferred shares and outstanding subordinated debt held by the HSBC Group for roughly CA$1.1 billion and CA$1.0 billion, respectively.
RBC will receive all of HSBC Canada's earnings from June 30, 2022 through close and the transaction, is anticipated to conclude in late 2023.
The acquisition will boost RBC's global competitiveness while preserving Canadians' access to a completive, varied home market. In Canada, the financial sector is extremely competitive, with 50 banks and hundreds of credit unions and fintechs competing to serve Canadians. HSBC Canada holds approximately 2% of Canadian deposits and mortgages.
Allen & Overy has industry-leading financial services M&A practise, with a greater emphasis on the banking industry. The Allen & Overy team was led by Duncan Bellamy (financial services M&A partner) and supported by Will Johnson (associate).
Blake Cassels & Graydon and Wachtell Lipton provided advice to RBC on Canadian and US law.