BOV will not pursue HSBC takeover

Bank of Valletta says it will not be pursuing any transaction related to the acquisition of shares in HSBC Bank Malta

Bank of Valletta's Head Office in Birkirkara (Photo: James Bianchi/MaltaToday)
Bank of Valletta's Head Office in Birkirkara (Photo: James Bianchi/MaltaToday)

Bank of Valletta has clarified it will not be pursuing any transaction related to the acquisition of shares in HSBC Bank Malta.

“Following upon statements made by relevant authorities, the Bank is clarifying that it is not interested in entering into transactions which would be - or could be perceived as - directly increasing market concentration in the banking industry,” it said.

On Tuesday, Bank of Valletta (BOV) confirmed it had been approached by third-parties who were expressing interest in prospective financial bids.

It was revealed BOV has been approached by a local consortium, including several prominent businessmen, bidding for HSBC. The move is understood to have been made in recent days after some members of the consortium decided to pull out.

The move worried industry players, with Central Bank of Malta (CBM) acting governor Alexander Demarco telling the Times of Malta the CMB was opposed to the idea of Maltese banks merging.

“We agree that there needs to be more competition in the banking sector, not less,” Demarco said. “So, we prefer that there is no consolidation between local banks.”

Last week it was revealed German fintech powerhouse RS2 has formally entered the race to acquire HSBC Malta, positioning itself as a serious contender and pledging to revive the Mid-Med Bank brand.

HSBC has long hinted that it wants to leave Malta, even though company bosses have consistently denied the intention. The ‘strategic review’ falls squarely within HSBC’s international consolidation to concentrate on its business in the far east.