• Sat. May 18th, 2024

Galicia to Acquire HSBC’s Argentina Business in $550 Million Deal

BySamantha Johnson

Apr 9, 2024
Galicia to Acquire HSBC’s Argentina Business in $550 Million Deal

HSBC Holdings announced on Tuesday that it will be selling its Argentina business to Grupo Financiero Galicia, the largest private financial group in the country, for $550 million. The sale will be facilitated by HSBC’s unit, HSBC Latin America B.V., signing a deal with Galicia.

According to the company, HSBC Argentina primarily focuses on domestic operations and has limited connectivity to the international network. This separation of the Argentina business from the rest of the HSBC operations will help reduce earnings volatility for the group, especially when translated into US dollars.

Grupo Financiero Galicia, which is based in Buenos Aires, is the fifth largest bank in Argentina. The acquisition of HSBC’s Argentina business will expand Galicia’s footprint in the country’s financial sector.

HSBC anticipates a pre-tax loss of $1 billion from the divestment in the first quarter of fiscal 2024. This move is part of the bank’s strategy to streamline its operations and focus on more profitable ventures.

By Samantha Johnson

As a content writer at newszkz.com, I delve into the realms of storytelling, blending words to paint vivid narratives that captivate and inform our readers. With a keen eye for detail and a passion for research, I craft compelling articles that resonate with our audience. My love for words drives me to explore diverse topics, ensuring that each piece I create not only educates but also entertains. Join me on this journey as we navigate the ever-evolving landscapes of news and knowledge together.

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