(News Bulletin 247) – HSBC suggested on Friday that the sale of its retail banking activities in France was threatened because of the difficulties encountered by My Money Group, the potential buyer, in financing the project.

In a press release, the banking group explains that the sudden rise in interest rates since the signing of the memorandum of understanding in 2021 has had the effect of significantly increasing the cost of the operation from the buyer’s point of view. .

Under these conditions, HSBC indicates that it has decided to no longer classify its French retail banking subsidiary as an asset available for sale, as has been the case since 2022.

The sale of retail banking activities in France was initially expected to be finalized in the second half of 2023.

If the transaction were not to be completed before May 31, 2024, the memorandum of understanding would automatically lapse, even if its finalization deadline could be postponed to November 30, 2024 “under certain circumstances”.

On the London Stock Exchange, the HSBC share rose by more than 3%, signing one of the strongest increases in the FTSE 100 index, in the wake of the good results published by the major American banks, JPMorgan in the lead.

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