HSBC has announced that it has agreed on a $15 million deal for Lloyds TSB’s Paraguayan operations.
“This transaction gives HSBC a presence throughout Mercosur, an exciting and growing economic association and enables us to better serve the needs of our regional and international customers, particularly in the areas of credit, trade, payments and treasury,” said Youssef Nasr, managing director for South America, HSBC Holdings.
The Lloyd’s Paraguayan arm currently has six branches and around 22,000 customers and HSBC claims that the deal provides it with a presence throughout the Mercosur trading bloc. Mercosur, established in 1991, covers Argentina, Brazil, Paraguay and Uruguay.
HSBC reported that the sale is conditional on regulatory approval in Paraguay and is likely to complete in the second quarter of 2006. The consideration will be paid at completion of the transaction.