Chrystia Freeland, Deputy Prime Minister and Canadian Minister of Finance, has officially approved the acquisition of HSBC Canada by the Royal Bank of Canada (RBC) for 13.5 billion Canadian dollars.

This is the most expensive acquisition among Canadian banks.

Since the news of Royal Bank's acquisition of HSBC Canada emerged, opposition parties and other groups have called on Freeland to block the acquisition, fearing further decline in competition in the Canadian banking industry.

After the Canadian Competition Bureau approved the deal in September, people were watching to see if Freeland had given the final approval for the deal.

When Freeland approved the acquisition, she attached some conditions to the Royal Bank of Canada, including not laying off more than 4,000 employees at HSBC Canada within six months after the deal, and not laying off frontline employees for two years. At least 33 HSBC branches provide services, including affordable housing financing.

The Royal Bank also committed to building a new global banking center in Vancouver.

Canadian media earlier reported that the Canadian branch of HSBC, headquartered in the UK, is ready for sale this year as the company faces pressure from its largest shareholders, China Ping An Insurance Group, to increase returns.

HSBC Canada was established in 1981 and currently has 130 branches, 4,200 employees, and 780,000 customers in Canada.

Financial analysts said that HSBC's international brand image and its position among Asian immigrants are attractive to the Royal Bank.

Opponents are concerned about banking monopoly...

This year, the Canadian federal government launched a consultation on enhancing competition in the financial sector, focusing on whether mergers among major banks should be officially banned and whether the government should work to restrict the ability of large banks to grow through acquisitions.

Many believe that RBC's acquisition of HSBC will reduce competition in the Canadian banking industry and have called on Freeland to block the deal.

The six major banks in Canada control about 93% of bank assets, and after completing this deal, the percentage of banking assets controlled by the six major banks will rise to about 95%.

For his part, Conservative leader Pierre Poilievre opposed the acquisition, saying that the Canadian banking industry was too concentrated and that the loss of HSBC Canada would only worsen the situation.

But Freeland responded to Poilievre saying that HSBC would abandon its business in Canada. Rejecting the acquisition could mean that more than 4,000 HSBC Canada employees will face unemployment and 780,000 Canadians will lose banking services. It would also weaken investor interest in Canada. Trust is a reckless and irresponsible behavior.