The bank accumulated debts of more than US$100 million in the country; was sold to an Argentine financial group
HSBC bank announced this Tuesday (April 9, 2024) the sale of its branch in Argentina to Grupo Financeiro Galícia, based in Buenos Aires. The total value of the transaction was US$500 million, subject to price adjustments.
In addition to acquiring the business, Banco Galícia also purchased insurance and asset management services, in addition to debt valued at US$100 million. The operation will be completed within 12 months.
In a statement, HSBC informed that the value of the negotiation “will be adjusted by business results and fair value gains or losses of the HSBC Argentina securities portfolio during the period from December 31, 2023 until the closing of the transaction”.
With the completion of the transaction, Grupo Financeiro Galícia becomes the largest bank in the country, surpassing competitor Macro, which purchased Itáu Unibanco from Argentina in 2023. It currently has 9,500 employees and more than 300 branches.
The sale of the Argentine division marks HSBC’s departure from Latin America. In 2015, the Brazilian branch was sold to Bradesco. In the released statement, the bank stated that it remains committed to services in Mexico and the United States.
A Reuters reported that HSBC’s main focus is to expand operations in Asian countries such as India and China.
Source: https://www.poder360.com.br/internacional/hsbc-anuncia-venda-de-filial-na-argentina-por-us-500-milhoes/
