HSBC has signed a deal with Landesbank Baden-Wuerttemberg (LBBW) to take full control of its German unit, Bloomberg has reported.
The financial details of the transaction have not been made public.
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By GlobalDataUnder the deal terms, HSBC Bank will buy an 18.66% stake in HSBC Trinkaus & Burkhardt from the regional lender, the report added.
As a result of this transaction, HSBC will own 99.33% stake in its German business and it plans to freeze-out the remaining investors as well.
The move is in line with the bank’s strategy to restructure its global operations into smaller markets, and boost growth in Asia as 50% of its revenues come from there.
HSBC is planning to retrench more than 35,000 positions to cut costs as the Covid-19 pandemic affects its revenues, especially in continental Europe.
Last year, its German unit recorded a 17% drop in net profit to €98m ($107m) due to a rise in bad loans.
The British lender is also looking to sell its US business, the retail network in France and operations in smaller non-strategic markets.
According to Bloomberg, the sale of HSBC’s French retail bank may affect 4,000 to 8,000 positions.
As of 2019, HSBC Trinkaus & Burkhardt had €26.6bn ($29bn) in total assets and employed more than 3,000 people.
