J.M. Smucker stock jumps toward 6-year high after profit and sales beat expectations and outlook raised

Royal Bank of Canada
RY,
-2.24%

RY,
-1.19%

said Tuesday it has reached an agreement to acquire HSBC Canada
HSBC,
-1.48%

HSBA,
+3.91%

for C$13.5 billion ($10.1 billion) in cash. “This acquisition builds on our core domestic retail business and expands our international product capabilities,” said Neil McLaughlin, Group Head, Personal & Commercial Banking, RBC. The deal is expected to close by late 2023 and to add a bank with $134 billion in assets as of Sept 30, about 130 branches and 4,200 full-time employees. The price offers a 9.4 times multiple of HSBC Canada’s estimated 2024 adjusted earnings of $1.4 billion assuming fully realized expense synergies, RBC said in a statement. The deal is expected to boost EPS by 6% based on 2024 consensus estimates. RBC expects about $740 million in annual pretax cost synergies and to incur total acquisition and integration costs of about $1 billion. Shares were not yet active premarket but are down 7% in the year to date, while the S&P 500
SPX,
-1.54%

has fallen 17%.

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