HSBC Holdings, PLC, which is Europe’s largest bank agreed to purchase 51% in the Korea Exchange Bank. HSBC Holdings purchased the stake for $6.3 billion dollars to increase their presence in the fast growing Asian market. The London based HSBC stated on Monday that it does not intend to launch an offer for the remainder of KEB’s shares and that the bank would remain listed on the Korea Exchange.

“The purchase fits the bank’s strategy of focusing on growth economies, particularly in Asia, Latin America and the Middle East.” HSBC Group Chairman Stephen Green

This is a giant leap forward HSBC considering they’ve had unsuccessful bids in previous years. The unsuccessful bids were declined from Seoulbank in 2002, Koram Bank in 2004, and Korea First Bank in 1998 and 2005.

“HSBC said it would finance the purchase from its own resources and the acquisition will be accretive to HSBC’s earnings per share in its first full year of operations with the HSBC group. It added that it had identified “a number of areas of potential business growth.”

[via NYTimes]

Tags: Business, HSBC Group, Korea Exchange Bank, Investing, Stocks, Stock Market, Money

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