HSBC sells Canadian business for £8.4bn

Royal Bank of Canada

HSBC has agreed to sell the Canadian wing of its business to the Royal Bank of Canada (RBC) for £8.4bn in cash.

The news broke last month that the UK-founded bank was exploring the sale of the Canadian division, evidently finding a buyer in Canada's biggest bank. HSBC shares climbed 5% on the back of the news yesterday (29 November), according to Refintiv data, as the bank said it may return some proceeds to investors via a dividend or share buybacks. The deal will see RBC acquire 100% of HSBC's Canadian equity, which includes 130 branches and over 780,000 retail and commercial customers, if it is approved by regulators. HSBC has been put under pressure this year by its biggest shareholders,...