BLOM Bank confirmed over the weekend that it’s currently holding talks with HSBC in a bid to acquire its operations in Lebanon.
“BLOM BANK SAL announces that it has been in discussions with HSBC regarding an acquisition of HSBC’s operations in Lebanon. At this stage there can be no certainty that a binding agreement in relation to the transaction will become effective. A further announcement will be made when appropriate,” a brief statement by the bank said.
The bank did not indicate whether the talks with HSBC have made any progress, although sources said that BLOM seems to have a strong opportunity to acquire the operations of the bank in Lebanon.
One of the key issues delaying a final deal between the two sides is the fate of HSBC employees and the compensation they are demanding, sources say. HSBC has nearly 200 managers and staff in Lebanon.
Bankers estimate that the value of the acquisition of HSBC Lebanon will range between $90 million to $100 million.
HSBC has a headquarters in Mina al-Hosn and two branches in Hamra and Dora. It will keep a representative office in Lebanon even if its retail operations are sold.
A source said that the sale of HSBC operations in Lebanon is part of an overall plan to restructure the bank and put more emphasis on private banking.
