British financial giant HSBC Holdings Plc will acquire Silicon Valley Bank (SVB) UK, a British subsidiary of Silicon Valley Bank, for £1 (about 160 yen).
As of March 10, SVB UK had about $6.6 billion in loans and about $8.1 billion in deposits, according to filings.
Noel Quinn, CEO of HSBC Holdings, said: “This acquisition is of great strategic significance for our UK business. We will strengthen our ability to respond to innovative, fast-growing companies, including those in the science field.”
The takeover, announced Wednesday, was backed by the UK government under “resolution” powers set up to clean up failed financial institutions without jeopardizing the stability of the financial system.
“Deposits are protected, taxpayers are not burdened,” Chancellor Jeremy Hunt tweeted, adding that the UK’s tech sector is urgently being protected.
Late on March 10th, the Bank of England (central bank) tweeted that SVB UK would go bankrupt, but SVB UK had a small presence in the UK.
｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
｜Original: HSBC Subsidiary to Acquire Silicon Valley Bank’s UK Unit for 1 Pound
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