Lloyds Banking Group is selling its onshore Dubai business to HSBC Bank Middle East.
The sale, which comes as part of Lloyds' plan to reduce its international presence, includes the group's retail, commercial and corporate banking business in the area.
The said assets were valued at totalling £482m as of December 31st. The business has a loan book of approximately $573m.
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 is the leading international bank in the UAE and the addition of Lloyds's strong presence in retail and commercial banking is highly complementary to our business. The acquisition underscores the strategic importance of the UAE, and of the MENA region as a whole, to HSBC," said Simon Cooper, Deputy Chairman and Chief Executive Officer of HSBC's operations in Middle Eastern and North Africa (MENA).
The impact of the sale on the Lloyds' accounts is not expected to be material.
The transaction is expected to complete during the second half of 2012.
Lloyds's share price was down 2.53% at 33.56 by 15:24, while HSBC was down 1.75% at 551.6p.
NR
