“It Will Reduce Competition” — Poilievre Seeks Government Rejection of RBC Plan to Takeover HSBC Canada

Pierre Poilievre, the Conservative Leader, is urging the Canadian government to reject the proposed $13.5-billion acquisition of HSBC Canada by the RBC to alleviate housing affordability concerns. 

Poilievre asserts that Canada’s banking sector is excessively concentrated and calls on Finance Minister Chrystia Freeland to halt the deal to enhance competition, particularly in areas such as mortgage rates.

RBC spokesperson Andrew McGrath counters this by emphasizing the benefits of the takeover for HSBC Canada’s clients while highlighting the Competition Bureau’s review, which did not raise any concerns under the Competition Act. The regulator’s review suggested that the acquisition would not significantly diminish competition in the marketplace.

The final approval for the merger rests with Minister Freeland, and her decision will be informed by the results of the regulatory review process.

Critics have opposed the deal since its announcement in November of the previous year, arguing that HSBC Canada plays a crucial role in maintaining market pressure, especially in areas like mortgage rates and climate policies.

Source: The Canadian Press

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