TORONTO –
Royal Bank of Canada has agreed to pay $13.5-billion in cash for HSBC Bank Canada in what is the largest domestic banking deal on record.
The acquisition, at a scale not seen in Canada in decades, would secure RBC’s spot as the country’s largest bank as it looks to establish itself as the hub for a more globalized clientele.
“It’s a unique, once in a generation opportunity to leverage all the investments we’ve already made in building a world-class retail and commercial bank,” said chief executive Dave McKay on an analyst call.
The deal will see it take over about $134 billion in HSBC assets including a significant mortgage book, but RBC sees it more as a way to add to its client base. That includes the commercial side as well as wealthy clients and newcomers.
“That we’re bringing in, first and foremost, commercial banking capability,…
