HSBC Offers USD37bn to Buy Out Hang Seng Bank and Strengthen Hong Kong Presence

HSBC Holdings has offered to purchase the remaining 37% of Hang Seng Bank that it does not already own for about USD37bn, reinforcing its long-term commitment to Hong Kong.

The proposed cash offer of HKD155 (USD19.8) per share represents a 30% premium over Hang Seng’s previous closing price, the London-based lender said on Thursday. If approved, the transaction would see Hang Seng’s publicly traded shares cancelled, taking the bank private.

HSBC, which currently holds a 63% stake, said the deal aligns with its strategy to expand in its largest market while maintaining the two brands. The acquisition would further integrate Hang Seng’s retail and wealth management capabilities into HSBC’s operations.

Hang Seng has recently faced pressure from rising bad loans in the property sector, while HSBC continues to navigate geopolitical tensions between the United States and China that weigh on regional markets.