Silicon Valley Bank UK arm acquired by HSBC for one pound

Global banking elephantine HSBC Holdings is coming to rescue the United Kingdom-based subdivision of the collapsed Silicon Valley Bank with a caller acquisition.

HSBC officially announced connected March 13 that its subsidiary HSBC UK Bank is acquiring Silicon Valley Bank UK Limited for 1 British lb sterling (GBP), oregon $1.21.

As of March 10, 2023, SVB UK had loans of astir 5.5 cardinal GBP ($6.7 billion) and deposits of astir 6.7 cardinal GBP ($8.1 billion), HSBC said successful the announcement.

For the fiscal twelvemonth ending Dec. 31, 2022, SVB UK recorded a nett earlier taxation of 88 cardinal GBP ($107 million). SVB UK's tangible equity is expected to beryllium astir 1.4 cardinal GBP ($1.7 billion).

“Final calculation of the summation arising from the acquisition volition beryllium provided successful owed course,” HSBC wrote, adding that the assets and liabilities of the genitor companies of SVB UK are excluded from the transaction. The institution added that the acquisition volition beryllium funded from existing resources and volition beryllium completed immediately.

According to HSBC Group CEO Noel Quinn, the acquisition makes “excellent strategical sense” of HSBC’s concern successful the United Kingdom, strengthens its commercialized banking franchise and enhances our quality to service innovative and fast-growing firms. He added:

"We invited SVB UK's customers to HSBC and look guardant to helping them turn successful the UK and astir the world. SVB UK customers tin proceed to slope arsenic usual, harmless successful the cognition that their deposits are backed by the strength, information and information of HSBC.”

The quality comes soon aft U.S. authorities ordered SVB to unopen down operations connected March 10, triggering a question of panic connected crypto markets owed to immoderate large crypto companies similar Circle and Coinbase having important vulnerability to the bank.

This is simply a processing story, and further accusation volition beryllium added arsenic it becomes available.