Merger and Acquisition: Absa buys Retail Banking and SMR Banking from HSBC

The news broke last Monday afternoon regarding the sale of the retail banking activities (Retail) and SME Banking of HSBC Mauritius to Absa. The rumor had been circulating for some time in banking circles and the two banks confirmed the agreement signed yesterday afternoon, simultaneously, through press releases.

Thus, the Hongkong and Shanghai Banking Corporation Limited, a 100% subsidiary of HSBC Holdings plc. has entered into an agreement to sell its domestic Wealth and Personal Banking and Business Banking businesses to Absa Bank (Mauritius) Limited (Absa Mauritius). The transaction will include assets and liabilities relating to 38,000 customers and the employees who serve those customers.

For its part, HSBC says it will continue to support large and medium-sized domestic companies and international subsidiaries of companies headquartered outside Mauritius, with a focus on cross-border trade and international business. HSBC will continue to offer its clients Markets and Securities, Global Custody and Sustainable Finance services.

Greg Lowden, Chief Executive Officer de HSBC à Maurice, explique que “our decision to sell these  operations reflects our desire to focus on our strengths as a leading international bank in Mauritius. Absa Mauritius is a worthy home for the many domestic retail and business banking customers we have served for many years. We will continue to serve the needs of our international customers, connecting them to our world-leading capabilities and international network.”

HSBC intends to consolidate its presence in Mauritius by focusing on Corporate and Institutional Banking clients. His withdrawal from Mauritius, as some rumors have suggested recently, is not on the agenda.

The transaction is subject to certain conditions, including regulatory approval, and is expected to close in the third quarter of next year.