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HSBC Holdings plc today posted an update on the sale of its business in Canada (HSBC Canada) to Royal Bank of Canada (RBC), subject to regulatory and governmental approvals.

On 21 December 2023 the Canadian Federal Government’s Minister of Finance approved the sale, with this approval enabling the transaction to proceed.

HSBC and RBC continue to make progress on implementation and the transaction is expected to close in the first quarter of 2024. HSBC remains committed to considering the payment of a special dividend of $0.21 per share as a priority use of the proceeds from this sale in the first half of 2024.

As per the terms of the deal announced in November 2022, RBC will acquire 100% of the issued common equity of HSBC Canada for a base cash consideration of CA$13.5 billion (US$10.1bn). In addition, RBC will acquire all the preferred shares and the outstanding subordinated debt issued by HSBC Canada and held by the HSBC Group for approximately CA$1.1bn (US$0.8bn) and CA$1.0bn (US$0.7bn), respectively.

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