HSBC’s Canadian unit loses National Bank and CIBC as bidders, reports Global and Mail

Oct 30 (Reuters) – National Bank of Canada (NA.TO) and Canadian Imperial Bank of Commerce (CIBC) (CM.TO) have dropped their bids for the business of HSBC Holdings PLC (HSBA.L) in Canada, while Bank of Montreal (BMO.TO) is still pursuing the deal, according to a report by The Globe and Mail newspaper.

HSBC revealed on October 4 that it was considering selling HSBC Bank Canada, a unit that analysts estimate to be valued at around C$8 billion ($5.88 billion) to C$10 billion ($7.35 billion). of dollars).

The Globe and Mail, in its report on Friday, quoted sources close to the process as saying the number of candidates for HSBC Bank Canada’s acquisition from the British lender was shrinking. Lawyers and analysts have said the concentration of the Canadian banking market could discourage big national banks from bidding, as the government has instructed the antitrust regulator to push for more competition.

The Global and Mail reported that when CIBC CEO Victor Dodig was asked about the sale of HSBC at a senior management meeting on Thursday, he suggested preserving capital was important in the current climate. market uncertainty and that the bank’s priority remained organic growth.

HSBC Bank Canada is comprised of four divisions covering HSBC’s commercial banking, retail banking, investment banking and domestic markets businesses.

National Bank of Canada and HSBC declined to comment on the Global and Mail report. CIBC and BMO did not immediately respond to requests for comment.

($1 = 1.3600 Canadian dollars)

Reporting by Jahnavi Nidumolu in Bengaluru; Additional reporting by Juby Babu; Editing by Will Dunham and Sandra Maler

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