HSBC’s Canada unit loses Nationwide Financial institution, CIBC as bidders, International and Mail reviews By Reuters

(Reuters) – Nationwide Financial institution of Canada (OTC:) and Canadian Imperial Financial institution of Commerce (CIBC) have dropped out as bidders for HSBC Holdings (NYSE:) PLC’s enterprise in Canada, whereas Financial institution of Montreal remains to be pursuing the deal, in line with a report in The Globe and Mail newspaper.

HSBC disclosed on Oct. 4 that it was contemplating promoting HSBC Financial institution Canada, a unit that analysts estimate to be valued round C$8 billion ($5.88 billion) to C$10 billion ($7.35 billion).

The Globe and Mail, in its report on Friday, quoted sources conversant in the method as saying that the sector of contenders to amass HSBC Financial institution Canada from the British lender was narrowing. Legal professionals and analysts have mentioned Canada’s concentrated banking market might discourage huge home banks from bidding as the federal government has charged the antitrust regulator to push for extra competitors.

The International and Mail reported that when CIBC CEO Victor Dodig was requested concerning the HSBC sale at a gathering of senior workers on Thursday, he hinted that preserving capital was essential within the present local weather of market uncertainty and that the financial institution’s precedence remained natural progress.

HSBC Financial institution Canada consists of 4 divisions overlaying HSBC’s industrial banking, private banking, funding banking and markets companies enterprise within the nation.

Nationwide Financial institution of Canada declined to touch upon the International and Mail report. HSBC, CIBC and BMO didn’t instantly reply to requests for remark.

($1 = 1.3600 Canadian {dollars})