HSBC bank confirmed on Tuesday a deal to sell its Argentina operations to local Grupo Financiero Galicia for approximately 550 million dollars. The deal has been in negotiation for weeks and will close in the next 12 months.
“Galicia will acquire all of HSBC Argentina’s assets, which include banking, wealth management and insurance, together with $100 million of subordinated debt issued by HSBC Bank Argentina and held by other HSBC entities, for a consideration of $550 million dollars. , which will be adjusted based on the business results and fair value gains or losses of the securities portfolio of HSBC Argentina during the period between December 31, 2023 and the closing of the transaction”, specifies the official statement.
The decision of the British banking entity has to do with the decision to concentrate its activities in Asia. “This transaction is another important step in the execution of our strategy it allows us to concentrate our resources higher-value opportunities across our international network,” HSBC CEO Noel Quinn said in a statement.
But the size of the local market and its economic fluctuations also played a role in his decision: “HSBC Argentina is a company mainly focused on the domestic market, with limited connectivity to the rest of our international network. Moreover, Given its size, it also generates considerable volatility in the Group’s earnings. when their results are converted into US dollars,” Quinn explained.
Argentina is not the only market that the entity abandons. HSBC has already completed the sale of its Canadian unit and its retail banking business in France this year. It had previously agreed to sell its businesses in Greece and Russia.
HSBC is not the first foreign-owned bank to leave the country in recent times. Last year, for example, Brazilian Itaú has sold its assets in the country to Banco Macro.
In writing
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Source: Clarin
