Dec 21 Reuters Canada on Thursday approved Royal Bank of Canada39;s C13.5 billion dollars 10.2 billion acquisition of HSBC39;s domestic unit, in a deal that would further tighten the country39;s top lenders39; grip on the market.

The deal is conditional on RBC establishing a global banking hub in Vancouver, waiving fees associated with the transfer of mortgages from HSBC to RBC and protecting HSBC39;s Canadian workforce.

RBC will also have to increase its client operations center workforce in Winnipeg by 10, provide 7 billion in financing for affordable housing construction across Canada and continue banking services at a minimum of 33 HSBC branches.

The Vancouver hub would support more than 1,000 jobs while creating about 440 net new jobs in British Columbia, Minister of Finance Chrystia Freeland said.

HSBC, in an exchange filing, said it is working with RBC to progress the deal which it expects to close in the first quarter of 2024. It said it is considering a special dividend of 21 cents a share from the proceeds in the first half of 2024.

RBC said the acquisition, which merges Canada39;s biggest and seventhbiggest lenders, will boost its domestic business as well as its position on the global stage.

HSBC has capabilities to transact in different currencies that, right now, we do not have and we will bring on as a result of the transaction. They had international money movement capabilities that we39;re really looking forward to, Personal Commercial Banking…