HSBC to Buy India Mutual Funds Business for $425 Million - Update
23 Dezembro 2021 - 10:57PM
Dow Jones News
By P.R. Venkat
HSBC Holdings PLC has agreed to buy the Indian mutual funds
business of L&T Finance Holdings Ltd. for $425 million as part
of efforts to build its wealth management business in Asia.
HSBC plans to merge the mutual funds business with its existing
asset-management operations in India, which had $1.6 billion assets
under management as of end-September.
The U.K. based lender has also been looking to grow its Asian
wealth management and insurance operations through acquisitions in
Asia. In August, HSBC agreed to acquire insurer Singapore-based
life insurance unit of France's AXA SA.
The acquisitions demonstrate "our commitment to capturing the
Asia wealth opportunity," HSBC chief executive Noel Quinn said. "We
will continue to invest significantly to achieve that goal," Mr.
Quinn said.
HSBC will fund the acquisition from its internal resources and
it will have a minimal impact on the bank's common equity tier-1
ratio, it said.
"The transaction with HSBC is in line with our strategic
objective of unlocking value from our subsidiaries which will help
us to strengthen our balance sheet for our lending business," said
Dinanath Dubhashi, chief executive of L&T Finance.
The acquisition when completed is expected to be immediately
accretive to HSBC's earnings and can achieve a return on investment
of greater than 10% in the medium term, the bank said.
J.P. Morgan and Citigroup advised L&T Finance on the
deal.
Write to P.R. Venkat at venkat.pr@wsj.com
(END) Dow Jones Newswires
December 23, 2021 20:42 ET (01:42 GMT)
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