HSBC in Exclusive Talks to Sell Majority Stake in Malta Branch to CrediaBank

HSBC Holdings has entered exclusive talks with CrediaBank to sell its majority stake in HSBC Bank Malta. CrediaBank was identified as a preferred bidder during a strategic review of HSBC's stake in the bank. No agreement has been reached yet, and the review remains ongoing. HSBC Bank Malta is listed on the Malta stock exchange and is around 70% owned by HSBC Continental Europe.

HSBC Holdings has entered exclusive discussions with CrediaBank to sell its majority stake in HSBC Bank Malta. The talks, which were announced on Friday, represent a significant step in HSBC's broader strategy to exit smaller markets and focus on Asia [1].

CrediaBank, formerly known as Attica Bank, has been identified as the preferred bidder during a strategic review of HSBC's stake in the bank. The Greek bank, which is the fifth-largest in Greece, is majority-controlled by Thrivest Holding Ltd, a company owned by Greek shipping magnates [2]. The acquisition is seen as an attempt to strengthen CrediaBank and enable it to compete with the four leading Greek banks.

The talks between HSBC and CrediaBank will now enter a new phase, with advisors from both sides ironing out the finer details and awaiting formal approval from regulators. The deal is subject to regulatory approval from the Malta Financial Services Authority (MFSA) and the European Central Bank, a process expected to take several months [1].

The announcement comes as a blow to several other bidders who had shown interest in acquiring HSBC Bank Malta over the past year. Local bank APS was the first to withdraw its interest, with local authorities pushing for an international bank to take HSBC's place. Other international banks faced resistance over various issues, including Armenian Bank Ardshinbank's owner's past business links to Russia and Hungarian bank OTP's continued presence in Russia [1].

The proposed acquisition is supported by the Greek government, which owns a 36% stake in CrediaBank through the country's sovereign wealth fund. The Greek government and the Bank of Greece have been instrumental in backing CrediaBank's expansion plans [2].

Finance Minister Clyde Caruana welcomed the development, noting that the entry of a new and experienced player in the local banking sector should contribute to fostering healthy competition and integrating Malta's financial system within the European market [2].

HSBC Holdings owns 70.03% of HSBC Bank Malta, with the remaining shares being publicly owned through its listing on the Malta Stock Exchange [1]. The sale of HSBC's majority stake in the bank is part of the holding company's broader strategy to exit smaller markets and pivot to Asia.

References:
[1] https://timesofmalta.com/article/hsbc-selects-greece-crediabank-preferred-bidder.1114656
[2] https://www.maltatoday.com.mt/business/business_news/136510/hsbc_announces_greek_crediabank_as_preferred_bidder_