- The buyer is HSBC
- All liabilities and assets of the division will be transferred to it
- The deal was supervised by the Ministry of Finance and the Central Bank
- Authorities say no local SVB customers will be harmed
The largest bank in England, HSBC, has announced that it is acquiring the UK subsidiary of Silicon Valley Bank. The purchase cost the conglomerate 1 pound ($1.2), and this is no joke.
“This transaction has significant strategic potential for all of our business here in the UK,” said HSBC CEO Noel Quinn.
Recall that on Friday, March 10, Silicon Valley Bank was closed in California. The federal authorities guarantee the return of deposits, but refuse to provide funding to the organization.
In this regard, the British division of the bank was put up for auction. The deal is supervised directly by the Treasury and the Central Bank, which previously expressed concern about a possible crisis.
The UK Treasury confirmed that the funds of local investors are in perfect order. All financial obligations of SVB UK are transferred to HSBC.
“SVB UK will continue to operate as usual. All services, deposit and credit accounts, payments – all this functions. Customers won’t notice the difference.” official a comment Central Bank.
As of 10 March, the UK division had £5.5bn of accounts payable, with total assets of £6.7bn.
In addition to HSBC, the Bank of London and the Abu Dhabi Welfare Fund took part in the auction. Interestingly, the winner paid a little more than $1 for the assets and liabilities of SVB UK. How the “bidding” took place against this background remains unclear.
Earlier, the Abu Dhabi Welfare Fund (UAE) bought Alameda Research’s stake in Sequoia Capital. This is not the first major acquisition of the organization for public funds.