The sale of the French retail banking activities of British banking giant HSBC to My Money Group, controlled by US fund Cerberus, is now “less certain,” HSBC’s European arm said in a press release on Friday.
“Significant increases in interest rates since the terms of the transaction were agreed (…) have made the completion of the transaction by the acquiring group (My Money Group and its subsidiary Banque des Caraïbes) less certain “, specifies the seller, HSBC Continental Europe.
This transaction was to be the culmination of a long process for HSBC: a strategic review initially, followed by a memorandum of understanding announced in June 2021 and a first signing in November of the same year.
It was accompanied by a salty addition for HSBC, with a writedown of $2.4 billion approved in the third quarter of 2022.
Deadline
“The parties remain committed to completing the transaction,” the seller notes, “but the appropriate modifications have not yet been agreed, which means a delay in completion of the transaction is expected if it goes through.”
“If the transaction has not been completed before May 31, 2024,” the transfer agreement “will automatically terminate,” warns HSBC Continental Europe.
HSBC’s retail banking business in France comprises approximately 250 points of sale and 3,900 employees, serving some 800,000 customers in France.
The buyer’s stated objective was to revive from its ashes the Crédit commercial de France (CCF) brand, a bank acquired twenty years ago by HSBC.
Contacted by AFP, My Money Group had so far not reacted.
Source: BFM TV
