Finance Minister Chrystia Freeland has approved RBC含羞草研究社檚 $13.5-billion takeover of HSBC Canada, despite calls from opposition politicians and other groups to block it over concerns of reduced competition.

Freeland含羞草研究社檚 approval was the last hurdle for the deal after the Competition Bureau approved it in September.

The minister含羞草研究社檚 approval comes with conditions on RBC, including that none of HSBC Canada含羞草研究社檚 4,000 employees be fired within six months of the closing date, or two years for front-line staff, and that banking services continue to be provided at a minimum of 33 HSBC branches for four years.

The federal government has also launched a consultation on strengthening competition in the financial sector that will look into questions like whether mergers between large banks should be formally banned and whether the government should limit how large banks can grow through acquisitions.

The consultation comes as many have called for RBC含羞草研究社檚 takeover of HSBC Canada to be blocked as it would decrease competition in what is already a heavily concentrated banking sector. Canada含羞草研究社檚 six biggest banks control around 93 per cent of banking assets, and this deal will boost it to about 95 per cent.

In calling for the deal to be blocked, Conservative Leader Pierre Poilievre said Canada含羞草研究社檚 banking sector is overly concentrated and the loss of HSBC Canada will only make it worse.

He pointed to the Competition Bureau含羞草研究社檚 finding that the bank was a rate disrupter on mortgages, the loss of which could leave Canadians paying higher rates.

含羞草研究社淭he Trudeau Liberals should have supported competition in banking & mortgage lending by blocking the merger. Now all Canadians will pay the price,含羞草研究社� he said on X, formerly Twitter, on Thursday.

Freeland responded to Poilievre on the platform, saying that HSBC was leaving Canada.

含羞草研究社淏y blocking this, Pierre Poilievre would have risked 4,000 workers losing their jobs, investors losing faith in Canada as a place to do business, and 780,000 Canadians losing banking services. That含羞草研究社檚 not a serious position 含羞草研究社� it含羞草研究社檚 reckless & irresponsible.含羞草研究社�

RBC chief executive Dave McKay has said that a rejection of the deal would have been a bad signal to foreign investors.

He said in an interview Thursday that approval was good for Canadians.

含羞草研究社淲e含羞草研究社檙e incredibly excited about bringing these two institutions together. It含羞草研究社檚 going to be great for Canadians and HSBC customers.含羞草研究社�

He maintained that there is extensive competition in Canadian banking, and that this deal doesn含羞草研究社檛 lessen that in 含羞草研究社渁ny shape or form.含羞草研究社�

Canadians are most concerned about affordability, he said, which is why the bank agreed to provide $7 billion in financing for affordable housing construction across Canada as part of the conditions of approval.

含羞草研究社淲e thought it was very important to address the No. 1 issue with Canadians, not competition. There含羞草研究社檚 tons of competition.含羞草研究社�

The bank has also agreed to set up a new global banking hub in Vancouver that will support more than 1,000 jobs and create about 440 net-new jobs in B.C., and increase its client operations workforce in Winnipeg by 10 per cent to create 100 new jobs.

McKay didn含羞草研究社檛 commit to maintain HSBC Canada jobs beyond the agreed timeline, saying the bank hadn含羞草研究社檛 been able to learn in-depth about employees until the deal was approved.

含羞草研究社淕ive us six months and we含羞草研究社檙e going to get to know the employees, and we含羞草研究社檒l manage a path going forward.含羞草研究社�

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