LONDON, D.C., England, Nov. 14 (UPI) — British banking giant HSBC Holdings said it will acquire Household International, the consumer finance firm that helps customers with patchy credit histories, in a deal valued at $14 billion.

The deal values each Household share at $30.04, around 34 percent above Wednesday’s close of $22.46. Household shareholders will be entitled to 2.675 HSBC shares or 0.535 HSBC American Depositary shares as part of the deal.

HSBC expects to complete the deal by the first quarter of 2003.

Household, based in Chicago, is a leading credit card, auto finance and mortgage lender, and one of the country’s biggest issuers of private label cards — cards issued for third parties, such as General Motors Corp’s GM Card.

HSBC said the deal would help it meet its aim of growing consumer assets by adding a business with more than 50 million customers.

The deal would also improve the geographic spread of HSBC’s earnings and give the bank a national network in the United States for consumer lending, credit cards and credit insurance with approximately 1,400 offices in 46 States.

Household Chairman and Chief Executive Officer William F. Aldinger, who will retain that post in the new holding company, said the enlarged company would benefit from HSBC’s financial strength.

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