Conservative Leader Pierre Poilievre is calling for the federal government to block Royal Bank of Canada鈥檚 $13.5-billion takeover of HSBC Canada as a way to help with housing affordability.
Poilievre said in a statement Friday that Canada鈥檚 banking sector is already overly concentrated and the loss of HSBC Canadian division will only make it worse.
鈥淚f the biggest banks in Canada simply buy up growing players, there鈥檚 no hope for there ever being more competition in Canadian banking.鈥�
He pointed to the Competition Bureau鈥檚 finding that the bank was a rate disrupter on mortgages, the loss of which could leave Canadians paying higher rates.
鈥淚f you have a smaller competitor pulling down rates, then we should want them to remain in place.鈥�
RBC spokesman Andrew McGrath said in a statement that the takeover is in the best interest of HSBC Canada鈥檚 700,000 clients, and that the Competition Bureau鈥檚 review did not identify Competition Act concerns with the deal.
鈥淲e strongly believe that RBC鈥檚 proposed acquisition offers HSBC鈥檚 Canadian clients the best possibility for continuity and stability,鈥� he said.
In its review, the federal regulator said the takeover wouldn鈥檛 likely result in a substantial lessening of competition.
It did however say the deal would mean a loss of rivalry between the two banks and that Canada鈥檚 banking sector remains concentrated with high barriers to entry.
The deal must still be approved by Freeland, whose decision will be informed by the regulatory review processes, said Katherine Cuplinskas, a spokeswoman for the minister.
A coalition of environmental groups including Stand.Earth, LeadNow and Decolonial Solidarity, who have been pushing against the deal largely because RBC鈥檚 climate policies clash with HSBC鈥檚 more progressive stance, welcomed Poilievre鈥檚 comments as a rare point of agreement.
Richard Brooks, climate finance director of Stand.earth, called on Freeland to listen to those opposed to the deal.
鈥淢inister Freeland needs to just do the right thing for our climate, for Indigenous rights, and for bank workers and customers and reject this mega deal.鈥�
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