Royal Bank of Canada (RBC) agreed to purchase the Canadian unit of HSBC Bank, the seventh largest bank in the country, for $10 billion, in its quest to expand its corporate client base and increase its presence on the West Coast.

According to Bloomberg, this acquisition granted Royal Bank, the largest bank in Canada by assets, about 130 additional branches, including 45 branches in the West Coast province of British Columbia.

Dave McKay, CEO of Royal Bank of Canada, said in a statement: "HSBC Bank Canada provides the opportunity to add a complementary business and client base in the market we know best, where we can deliver strong and valuable returns to clients." Adding that "this deal makes Royal Bank of Canada the preferred choice for commercial clients with international banking needs, newcomers to Canada, and wealthy clients who require global banking capabilities and efficient wealth management."

This move came as a rare major local acquisition by one of the big Canadian banks, after regulators banned mergers in the highly concentrated banking sector in the country, and with the largest lenders in Canada focusing their expansion efforts on the United States in recent years.