The HSBC Holdings plc (LON: HSBA) share price rose 0.68% after issuing an update on the sale of its Canadian division. On 29th November 2022, the global banking giant HSBC Holdings plc announced its strategic divestitures, specifically the sale of its Canadian branch, HSBC Canada, to another banking heavyweight, the Royal Bank of Canada (RBC).
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The proposed transaction was contingent upon obtaining the necessary consent from regulatory bodies and the government, emphasising its importance and scale. As the process moved forward, a pivotal moment occurred on 21st December 2023, when the transaction received the green light from a critical authority in the Canadian Federal Government.
The Minister of Finance stamped his approval on the sale, marking a crucial step forward and allowing the plans for the transaction to advance further. The ongoing collaboration between HSBC and RBC has been marked by diligent work towards finalising the details and ensuring a smooth transition.
The two banks are keenly focused on the implementation aspects of the deal, signalling their commitment to a successful handover. Current expectations are that the transaction will be finalised and officially closed within the first quarter of 2024, pointing to a new chapter for both banking entities.
In tandem with these developments, HSBC has communicated its intentions regarding the financial proceeds from this significant divestiture. The bank has committed to allocating a special dividend amounting to $0.21 per share.
This potential distribution to shareholders is being prioritised as a primary use of the funds gained from the sale of HSBC Canada. The timeframe for this consideration and potential disbursement is set for the first half of 2024, aligning with the bank's strategic financial planning post-transaction.
The move indicates HSBC's continued focus on delivering value to its shareholders despite undergoing significant restructuring.
HSBC share price.
The HSBC share price rose 0.68% to trade at 627.10p from Thursday’s closing price of 622.85p.
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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.