HSBC acquires UK arm of Silicon Valley Bank for Just INR 99!
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HSBC Holdings Plc has announced that its UK ring-fenced subsidiary, HSBC UK Bank plc, is acquiring Silicon Valley Bank UK Limited (SVB UK) for ￡1 (INR 99). The unit had loans of around ￡5.5 billion and deposits of around ￡6.7 billion as on?March 10, 2023.
HSBC announced that SVB UK has reported a pre-tax profit of ￡88 million for the financial year ending December 31, 2022. SVB UK’s tangible equity is estimated to be approximately ￡1.4 billion, and the final gain calculation resulting from the acquisition will be disclosed in due course.
The assets and liabilities of the parent companies of SVB UK are excluded from the transaction. The transaction completes immediately. The acquisition will be financed using HSBC’s existing resources, according to a statement by the bank.
HSBC
According to the report, Chief Executive Officer (CEO) Noel Quinn said, “This acquisition makes excellent strategic sense for our business in the UK. SVB UK customers can continue to bank as usual, safe in the knowledge that their deposits are backed by the strength, safety and security of HSBC.”
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