RBC is seeking to boost its international business by bringing HSBC Canada into the fold.

In an all-cash deal, RBC will acquire 100% of the common shares of HSBC Canada for $13.5 billion. The acquisition is expected to close by late 2023, though it is still subject to closing conditions, including regulatory approvals.

RBC did not say whether it would continue to operate HSBC as a separate banking brand in Canada, but in a statement, president and CEO Dave McKay described it as “a complimentary business and client base.”

“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,” McKay said in the statement. “It will help us better serve global clients looking to invest and grow in Canada.”

Earlier this year, HSBC said it was considering “strategic options” for its Canadian subsidiary amid shareholder pressure to focus more on its core markets. Despite being the largest bank in Europe and among the biggest globally, HSBC is a mid-sized bank in Canada, behind the Big Five. Locally, it has primarily sought to differentiate itself by catering to Canadian newcomers looking to set up personal banking, high-earning clients seeking global wealth management options and commercial clients, especially those that do business overseas.

“This acquisition builds on our core domestic retail business and expands our international product capabilities,” said Neil McLaughlin, group head of personal and commercial banking at RBC.

According to RBC, HSBC accounts for roughly 2% of Canadian deposits and mortgages. It has approximately 130 branches across the country and $134 billion in assets.

On the marketing front, HSBC Canada works with Wunderman Thompson as its creative agency, part of a global assignment. It also works with media agency Touche! as part of an assignment with parent network PHD, though the bank announced it would be starting a global media review last month.