Household HSBC Watch

Mumbai September 10, 2005 - The UK-based Hongkong and Shanghai Banking Corporation (HSBC) has signed an agreement with US-based Global Payments Inc to form a joint venture for credit card merchant acquiring businesses in Asia, including India. HSBC will transfer its existing credit card merchant acquiring businesses in 10 Asian countries to a new company and then sell a 56 per cent stake in the company to Global Payments for $67.2 million.

HSBC said the move is aimed at expanding the merchant acquiring businesses in India, Brunei, Hong Kong, Macau, China, Malaysia, Maldives, Singapore, Sri Lanka and Taiwan. HSBC would hold a 44 per cent stake in the venture. The deal is subject to necessary regulatory approvals and conditions. HSBC president and CEO, Michael Smith, said: “This is a good opportunity to join forces with Global Payments. The JV will have the benefit of HSBC’s large and extensive footprint in the region as well as Global Payments’ technological expertise.”