9th Jun 2016 06:10
LONDON (Alliance News) - HSBC Holdings PLC on Thursday said it has received regulatory approval for the sale of its Brazilian business to Banco Bradesco SA for USD5.2 billion in cash.
HSBC said the Brazilian Administrative Council for Economic Defence, the country's competition watchdog, had unanimously recommended the approval of the deal.
The sale, HSBC said, represents a significant step in its push to restructure its operations globally and reduce complexity in the business.
The deal will cut its risk-weighted assets by around USD37.0 billion and increase its common equity tier 1 ratio by around 65 basis points.
After the recycling of foreign exchange losses, HSBC said it will book an accounting loss of USD1.7 billion on the sale.
By Sam Unsted; [email protected]; @SamUAtAlliance
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