Conservative Leader Pierre Poilievre is urging the Trudeau government to block Royal Bank of Canada's (RBC) $13.5-billion acquisition of HSBC Bank Canada, as he voiced concerns over reduced banking competition and potential negative impacts on Canadians due to high living costs. This development was announced on Friday.
Poilievre has highlighted potential hazards to banking competition and lending rate hikes that could arise from the impending takeover. He criticized the deal for enabling RBC to gain 800,000 customers without offering any incentives, emphasizing that large banks should compete rather than consolidate power.
Despite these apprehensions, Canada’s Competition Bureau has endorsed the deal, stating that while the merger won't severely impact competition, it will mark the end of rivalry between the country's leading and seventh-ranked banks. The Bureau confirmed that this acquisition is not just another business deal, but a significant milestone as it stands as the largest acquisition in RBC's corporate history.
Finance Minister Chrystia Freeland is tasked with the final approval of the deal. Her decision will be guided by all necessary regulatory review processes, her spokesperson confirmed on Friday. Meanwhile, RBC justified its acquisition plan as it provides stability amidst the uncertainty caused by HSBC's departure from Canada. The bank believes that this move will aid in maintaining a steady financial landscape in a time of change.
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