Competition Bureau issues report summarizing its competition assessment of RBC’s proposed acquisition of HSBC Canada

Summary:

The Competition Bureau has completed its review of Royal Bank of Canada's (RBC) proposed acquisition of HSBC Bank Canada and has issued its findings. According to the report, the proposed merger is not likely to result in a substantial lessening or prevention of competition under the Competition Act. However, the Bureau found that it would lead to a loss of rivalry between Canada's largest and seventh-largest banks. The report also highlights that relevant financial services markets remain concentrated, with high barriers to entry and expansion, and that conditions may facilitate coordinated behavior among firms. The Bureau's findings will inform the Minister of Finance's ongoing review of the proposed transaction.