HSBC completes sale of US card unit to Capital One

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.

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"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."

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