HSBC in final talks to sell French retail business at hefty loss: sources

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Cerberus and a rival investment firm have told HSBC they would buy its French retail arm for a symbolic one euro provided the British bank ploughs more than 500 million euros ($582.70 million) into the business, sources told Reuters.

they would buy its French retail arm for a symbolic one euro provided the British bank ploughs more than 500 million euros into the business, sources told Reuters.HSBC is working with Lazard to sell its 270 retail branches in France as part of Chief Executive Noel Quinn’s strategy to slash costs across the banking group.

Cerberus and the other investor are the only bidders left in the process while French banks, which initially studied the dossier, have all walked away, three sources said, speaking on condition of anonymity. They did not name the other investor.HSBC has previously said the business is under a strategic review.

The sale process is culminating just as European bank share prices come under fresh pressure due to concerns about the economic impact of a second wave of COVID-19, with the STOXX 600 bank indexHSBC France said in its first half results that its private banking and wealth management business posted a 225 million adjusted loss before tax.

 

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