Sale of 49% stake in HSBC Mer

RNS Number : 8195T

HSBC Holdings PLC

12 June 2009

 



HSBC SELLS ITS 49 PER CENT STAKE IN
HSBC MERCHANT SERVICES TO GLOBAL PAYMENTS
FOR US$307.7 MILLION

HSBC Bank plc has sold its 49 per cent holding in HSBC Merchant Services LLP (HMS), the card processing joint venture that serves its UK business clients, to its partner in the venture, Global Payments Inc., for a consideration of US$307.7 million in cash.

The HMS joint venture was created in June 2008 when HSBC sold a 51 per cent stake to Global Payments Inc., a leading processor of electronic transactions. HSBC and Global Payments also have sale-and-referral agreements in the US and Canada along with a joint venture in Asia covering 11 countries and territories.

A new 10 year marketing alliance agreement has also been signed, under which HSBC will continue to refer its UK customers to HMS. No staff will be affected by the change of ownership and HMS will continue to be based in Leicester.

Noel Quinn, HSBC's UK Head of Commercial Banking, said: "We are focussed on ensuring that our commercial banking relationships benefit from a combination of HSBC's core service capabilities, including our international distribution, and from high quality support services. Global Payments is a market leader in the provision of card processing services, whom we know well from working together in Asia and North America. Our UK customers will continue to benefit from their expertise."

Paul R. Garcia, Chairman, President and Chief Executive Officer of Global Payments, said: "We are very pleased to acquire the remaining interest in our joint venture. Our performance in the United Kingdom this year has provided a strong foundation for long-term growth, as we continue to provide a wide range of high value payment solutions and world-class service to merchants. This transaction demonstrates the strength of our relationship with HSBC as our partnership in the United Kingdom evolves from a joint venture to a marketing alliance. We look forward to continuing and extending our successful worldwide relationship with HSBC." 

Notes to Editors:

1. HSBC Bank plc

HSBC serves 15.6 million customers in the UK and employs more than 40,000 UK staff. HSBC is Britain's most recommended big bank. HSBC Bank plc is a wholly owned subsidiary of HSBC Holdings plc, and a member of the HSBC Group. 

2. Global Payments Inc.

Global Payments Inc. (NYSE:GPN) is a leading provider of electronic transaction processing services for consumers, merchants, Independent Sales Organizations (ISOs), financial institutions, government agencies and multi-national corporations located throughout the United States, Canada, Latin America, Europe, and the Asia-Pacific region. Global Payments offers a comprehensive line of processing solutions for credit and debit cards, business-to-business purchasing cards, gift cards, electronic check conversion and check guarantee, verification and recovery including electronic check services, as well as terminal management. The company also provides consumer money transfer services from the United States and Europe to destinations in Latin America, Morocco, and the Philippines. For more information about the company and its services, visit www.globalpaymentsinc.com.

3. HSBC Holdings plc

HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide from around 9,500 offices in 86 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With assets of US$2,527 billion at 31 December 2008, HSBC is one of the world's largest banking and financial services organisations. HSBC is marketed worldwide as 'the world's local bank'.

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