HSBC Bank has sold its 49% holding in HSBC Merchant Services (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 $307.7 million in cash.
The HMS joint venture was created in June 2008 when HSBC sold a 51% stake to Global Payments, a processor of electronic transactions. HSBC and Global Payments also have sale-and-referral agreements in globally.
Noel Quinn, HSBC’s UK Head of Commercial Banking, said: “We are focused on ensuring that our commercial banking relationships benefit from a combination of HSBC’s core service capabilities, including our international distribution and support services. Our UK customers will continue to benefit from their expertise.”
Paul Garcia, Chairman and Chief Executive Officer, Global Payments said: “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.”
