HSBC Holdings Plc announced that the HSBC UK Bank unit is acquiring Silicon Valley Bank UK Limited (SVB UK) for £1. According to HSBC, Silicon Valley Bank UK Ltd had loans totaling about 5.5 billion pounds as of March 10 and deposits totaling about 6.7 billion pounds.
Noel Quinn, HSBC Group CEO, stated: “This acquisition makes excellent strategic sense for our business in the U.K. It strengthens our commercial banking franchise and enhances our ability to serve innovative and fast-growing firms, including in the technology and life-science sectors, in the U.K. and internationally.”
The SVB U.K. acquisition will be reportedly funded from existing resources. HSBC stated it will update shareholders on the acquisition in its first quarter results on 2 May 2023.
The acquisition of Silicon Valley Bank’s UK arm by HSBC is a huge win for the crypto community, as SVB was one of the main banks promoting fintech and blockchain businesses in the UK. HSBC has committed to continuing SVB’s goal and vision of encouraging innovation and growth in the crypto sector.