HSBC Bank Canada to acquire HSBC Financial Corporation Limited
HSBC Bank Canada and HSBC Financial Corporation Limited have jointly
announced that HSBC Bank Canada intends to acquire HSBC Financial Corporation
Limited from HSBC Finance Corporation in the United States. The planned internal
transaction is the result of an ongoing strategic review of the HSBC Group’s
North American operations and is expected to close by the end of 2008, subject
to regulatory and Board approvals.
All of the financial guarantees between HSBC Finance Corporation and HSBC
Financial Corporation Limited will remain in place for all debt issued by HSBC
Financial Corporation Limited prior to the closing.
HSBC Bank Canada had total assets of C$67.4 billion at 30 June 2008 and net
income of C$297 million for the half-year then ended. HSBC Financial Corporation
Limited had total assets of C$5.2 billion at 31 March 2008 and net income of
C$26 million for the first quarter then ended. Lindsay Gordon, President and
Chief Executive Officer of HSBC Bank Canada, said: “The HSBC Group has a global
strategy of ‘Joining up the company’.
As part of this strategy, HSBC Bank Canada will acquire HSBC Financial
Corporation Limited to ‘Join up’ all members of the HSBC Group in Canada under
one corporate structure. HSBC Bank Canada and HSBC Financial Corporation Limited
are both successful companies and will continue to operate as separate
businesses while sharing best practices as we build the HSBC brand in Canada.”
HSBC Bank Canada, HSBC Financial Corporation Limited and HSBC Finance
Corporation are subsidiaries of HSBC North America Holdings Inc., which is a
subsidiary of HSBC Holdings plc. |