Two bidders offer one euro for HSBC France

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HSBC may find itself with no other option than to sell its French activities at a considerable loss.

According to sources cited by ReutersThe US private equity firm Cerberus and another investor both offered to pay one euro for the lender’s French unit.But only if HSBC first recapitalizes the unit by injecting at least € 500 million into it.

The actions of European lenders have been hit hard by the Covid-19 pandemic, with HSBC also caught between the United States and China due to tensions sparked by the latter’s authoritarian approach to Hong Kong and tensions that result with the West.

Cerberus and the other company would have been the only remaining potential bidders.

HSBC tries to get rid of underperforming companies in order to increase its return on capital.

HSBC France’s private banking and wealth management branch recorded an interim loss of € 225 million before tax.



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