HSBC Holdings has signed an agreement with Banco GNB Sudameris to sell its businesses in Colombia, Peru, Uruguay and Paraguay for a cash consideration of $400m.
The sales of the businesses in Colombia and Peru are expected to be completed in the fourth quarter of 2012, while in Uruguay and Paraguay, the deal will be concluded in the first quarter of 2013.
Antonio Losada, president and CEO of HSBC Latin America and the Caribbean, said:
We are pleased to have reached this agreement with Banco GNB Sudameris as we seek to focus on our operations where we see the greatest potential for sustainable growth for HSBC. I would like to thank the management teams and employees for their dedication and wish them every success for the future.
As of 31 December 2011, the businesses included in the deal had 62 branches across the four countries and a gross asset value of $4.4bn.
The sales are conditional and require regulatory clearance; the total purchase price will be adjusted to its net asset value at completion.