Argentina's Grupo Financiero Galicia Acquires HSBC Argentina for $550 Million

Grupo Financiero Galicia has agreed to acquire HSBC Argentina for $550 million in a transaction that will cement its position as the largest domestically owned private bank in Argentina. The consideration also covers $100 million of subordinated debt issued by HSBC Argentina and held by other HSBC entities, and is subject to price adjustments. HSBC said it would recognise a pre-tax loss of $1 billion on the disposal in its first-quarter 2024 results.

The acquisition transfers to Galicia the complete operations of HSBC Argentina, encompassing retail and corporate banking, asset management, and insurance activities.

HSBC BOOKS $1 BILLION PRE-TAX LOSS ON DEPARTURE

HSBC said the Argentine unit was a largely domestically focused business with limited connectivity to the rest of its international network, and that its size generated substantial earnings volatility for the group when its results were translated into US dollars.