Global banking titan HSBC has completed the sale of its US card and retail services business to American card and banking group Capital One Financial Corporation.
The acquisition, first agreed back in August of 2011, was subject to various conditions including governmental and regulatory approvals; it closed on May 1st.
Under the terms of the transaction, HSBC received a cash consideration of $31.1bn, including $2.5bn based on a premium of 8.75% over the gross customer loan balances at March 31st 2012.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"HSBC Bank USA continues to offer credit cards to its customers," the bank said in a statement.
"The Business sold excludes HSBC Bank USA's credit card programme of $1.2bn at March 31st 2012, of which $0.4bn is scheduled to be sold to First Niagara Bank, NA, in the second quarter of 2012."
The company said in August that the sale would continue the execution of the strategy "to focus our US business on the international needs of customers in Commercial Banking, Global Banking & Markets, Retail Banking and Wealth Management and onshore Global Private Banking."
BC
-
Parental contributions to kids' university living costs could reach £14,000 a yearParents helping kids with university living costs face contributions of up to £14,000 per year, according to a report from HEPI and TechnologyOne.
-
Rightmove: property asking prices hit record highNews Rising demand for top of the ladder home is boosting asking prices, Rightmove research shows. Is now a good time to sell a property?
