22 February 2006
HSBC Latin America Holdings (UK) Limited (HLAH), a wholly owned subsidiary of HSBC Holdings plc, has entered into an agreement to acquire substantially all of Lloyds TSB’s branch assets in Paraguay for a consideration of approximately US$15 million.
Lloyds TSB has been in Paraguay for 85 years where it operates six branches, serving some 22,000 clients. Total assets amounted to US$180 million at 31 December 2005.
As part of the transaction, Lloyds TSB has agreed to incorporate a new company into which the assets and liabilities of the branches will be transferred. This will then be sold to HLAH. Completion of the transaction, which is subject to final regulatory approval in Paraguay, is due to take place in the second quarter of this year.
The consideration will be paid at completion of the transaction.
Youssef Nasr, HSBC Holdings plc Managing Director for South America, said: “We are pleased to acquire the prestigious Lloyds banking operation in Paraguay and to welcome Lloyds’s customers to HSBC. This transaction gives HSBC a presence throughout Mercosur*, an exciting and growing economic association and enables us to better serve the needs of our regional and international customers, particularly in the areas of credit, trade, payments and treasury.”
Media enquiries to Antonio Seidl +55 11 3847 5785
Footnote:
* The Mercosur is a trading bloc composed of Argentina, Brazil, Paraguay and Uruguay. It was created in March 1991.
