VANCOUVER, Sept. 20, 2011 /CNW/ - HSBC Holdings plc, through its
wholly-owned subsidiary HSBC Bank Canada, has agreed to sell the
full-service investment advisory business of HSBC Securities (Canada)
Inc. ("the Business") to a wholly-owned subsidiary of National Bank of
Canada ("National Bank"). As at 31 August 2011, the gross assets of the
Business were C$199.3m and assets under administration of the Business
The agreed purchase price for the Business, payable in cash, is C$206m,
subject to adjustment for the value of working capital of the Business
as at closing. The price is also subject to adjustments to reflect loss
of business due to attrition of investment advisors prior to closing
and during a post-closing period.
As part of the sale agreement, HSBC Bank Canada will refer clients with
non-discretionary full-service retail brokerage needs to National Bank,
and HSBC and National Bank will cooperate to serve the financial needs
of mutual clients. The agreement also provides HSBC Securities (Canada)
Inc. access to National Bank's retail brokerage network for equity and
debt public offerings subject to certain terms and conditions.
The sale of the Business is in line with the strategy announced in May
2011 and the proceeds will be reinvested to grow the businesses of the
Canadian bank which are fully aligned with our strategy. HSBC Bank
Canada will focus on its competitive strengths, seeking to expand its
commercial banking business, particularly in central Canada, and
investing in its global banking and markets, and retail banking and
wealth management businesses.
The transaction, which is subject to regulatory review and approval, is
expected to close before 31 December 2011.
The full service investment advisory component of HSBC Securities
(Canada) Inc. comprises some 120 investment advisors plus associated
office managers, office administrators and sales staff.
Notes to editors:
1. HSBC Securities (Canada) Inc.
HSBC Securities (Canada) Inc. is a wholly-owned subsidiary of HSBC Bank
Canada. HSBC Bank Canada, a subsidiary of HSBC Holdings plc, has
approximately 8,000 employees and more than 260 offices, including over
140 bank branches, and is the leading international bank in Canada. For
more information about HSBC Bank Canada Inc and its products and
services, visit www.hsbc.ca.
2. HSBC Holdings plc
HSBC Holdings plc, the parent company of the HSBC Group, is
headquartered in London. The Group serves customers worldwide from
around 7,500 offices in over 80 countries and territories in Europe,
the Asia-Pacific region, North and Latin America, the Middle East and
Africa. With assets of US$2,691bn at 30 June 2011, HSBC is one of the
world's largest banking and financial services organisations.
SOURCE HSBC Bank Canada
For further information:
Media enquiries to: