HSBC Bank Malta has issued a company announcement clarifying that “no decisions have yet been made” regarding a strategic review of its majority shareholding and amidst reports that APS Bank is set to acquire it.

“Having made further enquiries, HSBC Malta has been informed by the majority shareholder that the review process is at an early stage, will consider a range of options and no decisions have yet been made,” the bank said in the statement published this afternoon.

Yesterday morning, HSBC Holdings p.l.c. issued a short and cryptic statement saying it will be undertaking “a strategic review” of its indirect 70.03% shareholding in the Bank. Within hours, Whoswho.mt reported that APS Bank is planning to purchase HSBC’s Malta branch with talks allegedly being at an advanced stage.

And while an HSBC Malta spokesperson reassured Lovin Malta that it’s “business as usual” for the Malta branch, the bank later also said it is “not aware” of any negotiations related to its acquisition by APS bank… leading to a request for clarification of the position from its majority stakeholder. Today’s statement is a result of that request.

HSBC has been moving its operations away from Europe and pivoting toward the market in Asia, with such sales happening in other countries on the continent.

According to reports, the negotiations regarding Malta have been ongoing for several years, since it became clear that HSBC Malta was going to lessen its operations. 

Meanwhile, earlier this year, HSBC Malta’s new CEO Geoffrey Fichte brushed aside rumours of the bank’s possible departure from the country.

Although the negotiations have reportedly gained momentum in recent months, the transition will not be happening any time soon. If the deal does go through, however, APS would purchase HSBC’s 70% stake in the bank – it is not yet clear whether HSBC will choose to keep a minority share. This would substantially increase APS’ market share, make it an effective competitor with the Bank of Valletta, and have HSBC customers eventually transferred to it.

What do you make of this latest development, and would you like to see this rumoured deal become a reality?