KOREA Development Bank, part of state-owned KDB Financial Group, said yesterday it has signed a memorandum of understanding to buy HSBC Holding’s retail businesses in South Korea.
No value was given to the deal, which will see KDB acquire 11 HSBC branches, including all deposits and mortgage-lending bonds.
Kang Man-soo, the chairman of the Korean group, had indicated early last week that a deal was close to being completed.
HSBC has been selling off assets in peripheral markets in recent months to focus on its core client bases in Europe and Asia.
KDB is planning to go public in an initial public offering before the end of this year, in a listing that could raise in to $2.5bn, including $1.5bn for the government.