HSBC on Thursday said that its Middle East unit had agreed to buy UAE-based assets worth $769 million (579 million euros) that belonged to its part-nationalised rival Lloyds Banking Group. "HSBC Bank Middle East ... has entered into an agreement to acquire the onshore retail and commercial banking business of Lloyds Banking Group in the United Arab Emirates," the lender said in a statement.
"The value of the gross assets being acquired is $769 million as at 31 December 2011. The transaction, which is subject to regulatory approvals, is expected to complete in 2012." The business being acquired from Lloyds Banking Group (LBG) had approximately 8,800 personal and commercial customers and a loan book of about $573 million at the end of 2011.
"HSBC is the leading international bank in the UAE and the addition of Lloyds' strong presence in retail and commercial banking is highly complementary to our business," said Simon Cooper, chief executive of HSBC's Middle East and North Africa (MENA) operations. "The acquisition underscores the strategic importance of the UAE, and of the MENA region as a whole, to HSBC." LBG is meanwhile offloading assets and slashing thousands of jobs after a massive British-government bailout that occurred in the wake of the global financial crisis.
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