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Canadian Imperial Bank of Commerce (CIBC)
Symbol CM
Shares Issued 904,884,760
Close 2022-10-19 C$ 59.07
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Globe says HSBC Canada sale laden with complexities

2022-10-20 07:13 ET - In the News

See In the News (C-HSB) HSBC Bank Canada

The Globe and Mail reports in its Thursday, Oct. 20, edition that the sale HSBC Bank Canada is shaping up to be a challenging exercise. The Globe's triple bylined item reports that HSBC Holdings' Canadian bank is very profitable, churning out $717-million in net income last year. Its 13.3-per-cent return on equity, a crucial banking metric, makes it globally competitive. Yet the timing of the deal, coupled with a fraught political landscape, is making any sale much trickier than it otherwise might have been, according to 10 unnamed banking sources. A sale of HSBC Bank Canada could be the largest deal for a domestic bank in more than two decades, with a price tag that could reach $10-billion. In simple terms, that would be the highest price ever paid for a Canadian bank, though Toronto-Dominion Bank's $8-billion deal for Canada Trust in 2000 would be worth more after adjusting for inflation. In Canada's highly consolidated market, major banking assets rarely come up for sale, especially since the federal government blocked proposed mergers of the largest banks in 1999. Acquiring HSBC Canada, then, presents a generational opportunity for its rivals, but one that is laden with strategic complexities.

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