Poilievre urges feds to block RBC’s $13.5B takeover of HSBC over competition concerns
Global News
Pierre Poilievre said the loss of British-owned HSBC's Canadian division will exacerbate issues in Canada's banking sector, which he said is already overly concentrated.
Conservative Leader Pierre Poilievre is calling on the federal government to block the Royal Bank of Canada’s proposed $13.5-billion takeover of HSBC Canada, saying it will further decrease competition and drive up borrowing rates.
Speaking with radio host Alex Pierson on 640 Toronto on Friday, Poilievre said the loss of British-owned HSBC’s Canadian division will exacerbate issues in Canada’s banking sector, which he said is already overly concentrated.
“The six biggest banks control almost 90 per cent of all mortgages in Canada,” he said on the AM radio station owned by Corus Entertainment, which is the parent company of Global News.
“This would take out one potential upstart competitor who could, if it stays in the market and doesn’t get bought, could fight for more market share by offering better products and services.”
Poilievre said HSBC’s presence in major mortgage markets like Vancouver and Toronto forces RBC and other major banks to “inch down” their borrowing rates in order to compete for customers.
He said that the lack of competitiveness across major industries in Canada is a reason why the cost of living has soared so dramatically in recent years. If elected prime minister, he said he would block major mergers in federally regulated sectors like banking, telecom and airlines.
“There should be no more mergers,” he said.
Finance Minister Chrystia Freeland still needs to approve the deal, which was struck in November 2022, in order for it to officially move forward. A spokesperson for Freeland’s office said her decision will be informed by the regulatory review processes.