Toronto
Pierre Poilievre, the leader of Canada’s Conservative party, has urged the federal government to reject Royal Bank of Canada’s proposed acquisition of HSBC’s domestic unit for C$13.5 billion ($9.84 billion). Poilievre highlighted concerns regarding banking competition and emphasized the potential impact on lending rates in an interview with the Globe and Mail. According to Poilievre, blocking the acquisition is a critical step that the government can take to address issues of affordability. He expressed apprehensions about reduced competition in the Canadian banking sector if the country’s largest bank, RBC, were to acquire a growing smaller player like HSBC Canada. He emphasized the importance of maintaining downward pressure on lending rates, which could be compromised if HSBC were to be removed from the market. In a recent development, the Competition Bureau of Canada had indicated that RBC’s proposed acquisition of HSBC Canada was unlikely to have a negative impact on competition, thereby clearing the path for the deal to proceed. However, the regulatory body did acknowledge that the acquisition could lead to reduced competition between Canada’s largest and seventh-largest banks.
The Conservative leader’s opposition to the acquisition reflects broader concerns about potential market consolidation and the resulting implications for consumers and the overall banking landscape in Canada.
