RCMP uncovers plot to sell drones and equipment to Libya
The RCMP says it has uncovered a plot by two men in Montreal to sell Chinese drones and military equipment to Libya illegally.
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, globally connected clients, trade finance and multi-currency accounts, and preferential access to the next generation of clients," said McKay.
The bank expects to achieve cost savings of about $740 million for 2024, or about 55 per cent of HSBC Canada's current expense base, through a combination of integrating technology, closures among the 130 branches, and job cuts.
Neil McLaughlin, group head of personal and commercial banking at RBC, said there will be reductions but the bank does hope to absorb many of the 4,200 current HSBC Canada employees.
"There are obviously places we will not require the same number of FTE (full-time equivalent jobs) to service the combined client base. We have looked at that, and we feel very strongly that the number of open jobs we have across our business, and looking at where those FTE's are, we'll be able to welcome those employees in."
The deal will require approval from the Office of the Superintendent of Financial Institutions, the Competition Bureau, and the Ministry of Finance, but McKay said that as HSBC Canada has a market share of two per cent or less, he doesn't see areas of concern.
"We are not aware of any areas where the bureau is likely to have concern," said McKay. "This is still a relatively small bank by market share."
RBC expects the deal to close by late 2023 subject to closing conditions and regulatory approval.
Global banking giant HSBC Holdings PLC said earlier this year that it was reviewing strategic options for its Canadian subsidiary including the possible sale of the operations.
HSBC Group chief executive Noel Quinn said the bank decided to sell the Canadian business after a thorough review that concluded that there was a material value upside from selling.
"The deal makes strategic sense for both parties, and RBC will take the business to the next level," Quinn said in a statement.
"Our group strategy is unchanged, and closing this transaction will free up additional capital to invest in growing our core businesses and to return to shareholders."
The last time Canada's banking industry saw a deal of this scale was TD Bank Group's acquisition of Canada Trust in 1999 for about $8 billion, which is the equivalent of about $13.1 billion adjusted for inflation.
TD made the deal after the federal government blocked proposed mergers between RBC and Bank of Montreal as well as between TD and CIBC in 1998, which established a convention that mergers between the Big Five banks would not be allowed to go ahead.
This report by The Canadian Press was first published Nov. 29, 2022
The RCMP says it has uncovered a plot by two men in Montreal to sell Chinese drones and military equipment to Libya illegally.
The Canadian Medical Association is asking the federal government to reconsider its proposed changes to capital gains taxation, arguing it will affect doctors' retirement savings.
A group of demonstrators were kicked out of the legislature after a second NDP motion calling for unanimous consent to reverse a ban on the keffiyeh failed to pass.
A 35-year-old man wanted in connection with the murder of Toronto resident 29-year-old Sharmar Powell-Flowers nine months ago has topped the list of the BOLO program’s 25 most wanted fugitives across Canada, police announced Tuesday.
Former NDP leader Tom Mulcair says that what's happening now in a trash-littered federal park in Quebec is a perfect metaphor for how the Trudeau government runs things.
Canadian pet owners are finding companionship beyond dogs and cats. Tigers, alligators, scorpions and tarantulas are among some of the exotic pets they are keeping in private homes, which pose risks to public safety and animal welfare, advocates say.
There is a swaying sea of colour in some cities across Canada, and it's a sure sign of spring: cherry blossoms are in bloom.
A Michigan woman was charged Tuesday with second-degree murder and other crimes after prosecutors say she drunkenly smashed her SUV into a boat club that was hosting a birthday party, killing two young siblings and injuring several other people.
Toronto's Chief of Police has clarified a statement that he'd hoped for "a different outcome" made just after Umar's Zameer acquittal, telling reporters Tuesday he supports and accepts the jury's finding in the five-week trial.
The giant stone statues guarding the Lions Gate Bridge have been dressed in custom Vancouver Canucks jerseys as the NHL playoffs get underway.
A local Oilers fan is hoping to see his team cut through the postseason, so he can cut his hair.
A family from Laval, Que. is looking for answers... and their father's body. He died on vacation in Cuba and authorities sent someone else's body back to Canada.
A former educational assistant is calling attention to the rising violence in Alberta's classrooms.
The federal government says its plan to increase taxes on capital gains is aimed at wealthy Canadians to achieve “tax fairness.”
At 6'8" and 350 pounds, there is nothing typical about UBC offensive lineman Giovanni Manu, who was born in Tonga and went to high school in Pitt Meadows.
Kevin the cat has been reunited with his family after enduring a harrowing three-day ordeal while lost at Toronto Pearson International Airport earlier this week.
Molly Knight, a Grade 4 student in Nova Scotia, noticed her school library did not have many books on female athletes, so she started her own book drive in hopes of changing that.
Almost 7,000 bars of pure gold were stolen from Pearson International Airport exactly one year ago during an elaborate heist, but so far only a tiny fraction of that stolen loot has been found.