Blakes assists in RBC’s 13.5-billion-dollar acquisition of HSBC Canadian unit

Blake, Cassels & Graydon is serving as Canadian legal counsel to HSBC in its $13.5 billion sale of its Canadian assets to Royal Bank of Canada. Also in this week’s deals roundup is the Canada Pension Plan Investment Board in its $635-million acquisition of interest in a Brazilian network provider.

RBC to expand via $13.5 billion acquisition of HSBC Canadian assets

Royal Bank of Canada, currently Canada’s largest bank by assets, agreed to acquire HSBC Holdings Plc’s Canadian unit in a $13.5 billion deal that will add around 130 more branches to RBC.

Blake, Cassels & Graydon; Allen & Overy; and Wachtell, Lipton, Rosen & Katz are serving as Canadian, UK, and US counsel, respectively, to RBC. RBC Capital Markets served as lead and primary financial advisor.

HSBC Global Banking and JPMorgan Cazenove served as financial advisers to HSBC in connection with the transaction.

"HSBC Canada offers the opportunity to add a complementary business and client base in the market we know best and where we can deliver strong returns and client value given our financial strength and award-winning service," said Dave McKay, RBC President & CEO. "This also positions us as the bank of choice for commercial clients with international needs, newcomers to Canada and affluent clients who need global banking and wealth management capabilities. It will help us better serve global clients looking to invest and grow in Canada."

HSBC Group CEO Noel Quinn said, “The deal makes strategic sense for both parties, and RBC will take the business to the next level. We look forward to working closely with RBC's leadership team to ensure a smooth transition for our clients and  colleagues. Our Group strategy is unchanged, and closing this transaction will free up additional capital to invest in growing our core businesses and to return to shareholders.”

The deal is expected to close in late 2023.

CPP Investments buys stake in Brazilian V.Tal for $635 million

Canada Pension Plan Investment Board (CPP Investments) acquired a 9.5-percent interest in V.Tal, a Brazilian network provider, in a deal valued at $625 million.

V.Tal is Brazil’s largest neutral fibre-to-the-home (FTTH) network operator and caters to nearly 20 million households across the country.

A neutral FTTH network allows various internet service providers to purchase bandwidth on a single-fibre network.

CPP Investments manages assets worth $30 billion in Latin American real estate, infrastructure, public equities, private equity funds, and direct investments.

Iconic Minerals to option 50 percent of Smith Creek project

Iconic Minerals Ltd., a Vancouver, BC-based metals mining company, signed a binding term sheet with Lithium of Nevada Pty Ltd. (LON), a privately-held Australian company, to option up to 50 percent of Iconic Minerals’ Smith Creek project.

The Smith Creek project is located 60 km (37 miles) southwest of Austin, Nevada, with a claim block that covers an area of 46 square kilometres (17.8 square miles) and a potential for brine systems and further sediment resources.

Iconic Minerals CEO Richard Kern, said, “We look forward to working with our new joint venture partner to explore this very attractive Lithium project."