Canadian lender Royal Bank of Canada has completed its previously announced C$13.5bn ($9.96bn) acquisition of HSBC’s Canadian unit HSBC Bank Canada.

In November 2022, HSBC Holdings, through its wholly-owned subsidiary HSBC Overseas Holdings (UK), agreed to divest its Canadian banking business to RBC.

In September last year, Canada’s competition watchdog approved the acquisition stating that the transaction does not affect the competition in the country.

HSBC said that the sale follows a strategic review that evaluated its low market share in Canada and its ability to invest in HSBC Canada’s growth and expansion in other markets.

The sale of its Canadian unit unlocks significant value for the Group, said the UK lender.

HSBC Group chief executive Noel Quinn said: “Completing this deal is another important milestone in HSBC’s transformation, and it will provide capital that will enable us to grow our core businesses and reward our shareholders for their loyalty, including through an intended special dividend of US$0.21 per share.

“My guiding light has always been putting our customers at the heart of everything I do. Part of what makes HSBC special is that so many of my colleagues feel exactly the same way.

“I have been fortunate to work with more amazing clients than I can count. They have taught me so much and being able to help them achieve their ambitions and goals has been so very satisfying.”

HSBC said that the closing of the acquisition will realise an estimated $4.9bn gain on sale in the first quarter of 2024.

It also involves the departure of its Canada CEO Linda Seymour after 35 years of association with the organisation.

In December 2023, RBC announced several commitments, such as creating new jobs, donating 1% of net income before taxes to communities, and financing new housing in Canada.

In addition, the bank is also committed to building a new Global Banking Hub in Vancouver, in the next five years, supported with more than 1,000 jobs across multiple disciplines.

The closing of the acquisition will now facilitate the conversion activities, where HSBC Canada’s branches and offices will be rebranded as RBC locations.

RBC president and CEO Dave McKay said: “Today marks one of the most exciting times of our 155-year history and a pivotal milestone in our long-term growth story as we welcome 4,500 employees and 780,000 clients from HSBC Canada.

“This once-in-a-generation opportunity will show Canadians how our combined organisation will deliver an enhanced banking experience, create better value for clients and strengthen our communities.

“I want to thank everyone involved in the monumental team effort to bring this deal to life and I look forward to the possibilities this acquisition will deliver.”