HSBC Bank Canada has signed an agreement to acquire all the shares of Intesa Bank Canada (IBC). The deal, which is subject to regulatory approval, is expected to close on May 31.

Financial terms of the transaction were not disclosed.

IBC, an Italian-owned foreign bank, has 11 branches serving personal, commercial and corporate clients. At Dec. 31 2003, ICB had total assets and net assets of $1.1 billion and $114 million, respectively.

“After an extensive strategic review, Banca Intesa S.p.A. has decided to sell its operations in Canada. We are delighted that HSBC Bank Canada has agreed to acquire Intesa Bank Canada because we know that our customers and employees will be treated well,” said Giacomo Ghillani, president and CEO, IBC, said in a news release.

“The acquisition of Intesa Bank Canada will increase our presence in central Canada and strengthen our position as an alternative to the big domestic banks,” stated Lindsay Gordon, president and CEO of HSBC Bank Canada.

“We look forward to welcoming the clients of Intesa Bank Canada to the HSBC Group and to providing them with a continued high-level of customer service and an expanded range of financial products and services,” head added.

Rothschild acted as exclusive financial adviser to Banca Intesa.