HSBC has stepped in to purchase the U.K. arm of collapsed tech startup lender Silicon Valley bank after all-night talks.
IN BRIEF:
-HSBC UK acquired SVB U.K. for £1 ($1.21), in a deal that excludes the assets and liabilities of SVB U.K.’s parent company.
-A consortium of private equity firms had also submitted a formal acquisition proposal to the U.K. Treasury and the Prudential Regulation Authority at the Bank of England.
-The sale, facilitated by the Bank of England in consultation with the U.K. Treasury, will protect the deposits of SVB U.K. clients, the Treasury said in a statement.
What does this mean?
The acquisition “strengthens our commercial banking franchise and enhances our ability to serve innovative and fast-growing firms, including in the technology and life-science sectors, in the U.K. and internationally,” said HSBC Group CEO Noel Quinn.
