Blocking HSBC deal would send ‘very bad signal’ to foreign investors: RBC CEO

globalnews.ca:

RBC chief executive Dave McKay made some of his most forceful comments yet on the importance of the federal government approving the bank’s $13.5-billion takeover of HSBC Canada as the deal attracts rising opposition.

Speaking during a conference call to discuss the bank’s fourth-quarter earnings after reporting a rise in profits, McKay said that a rejection of the deal would be a bad look for the country.

“It would be a very bad signal to foreign investors to not move forward with this, as we have to attract capital into this country,” he said.

“Everybody understands that HSBC is leaving, has made a choice to leave, and it would look horrible on Canada if you didn’t allow the free flow of capital.”

His comments come after the finance committee of the House of Commons in early November called on the Finance Minister to block the deal over concerns it will hurt competition, though Liberal members abstained from the vote.

Conservative Leader Pierre Poilievre in October also called for the deal to be blocked, pointing to the Competition Bureau’s finding that the bank was a rate disrupter on mortgages so its loss could leave Canadians paying higher rates.

A coalition of anti-monopoly, environmental and Indigenous groups also launched a campaign on Nov. 23 in an effort to stop the deal.

McKay emphasized on the call Thursday that the deal was good for Canada with increased taxes, increased dividends staying in the country, and that it had been thoroughly studied by the Competition Bureau that cleared the deal.

“They put enormous diligence through an extended process with tens of thousands of documents. We have to respect the process. And therefore, I remain confident given that everybody, at all levels, understand the benefits