HSBC sells Panama operations to Bancolombia in $2.1bn deal

UK financial giant HSBC Holdings plc (LON:HSBA) said Tuesday it had agreed to sell HSBC Bank (Panama) SA to Colombian lender Bancolombia SA (NYSE:CIB) for USD2.1bn (EUR1.6bn) in cash.

The offload, which will be carried out through HSBC Holdings’ fully-controlled unit HSBC Latin America Holdings (UK) Ltd, has yet to receive regulatory green light and is seen to close in the third quarter of this year.

The price is based on an estimated net asset value at completion of USD700m, the vendor said.

The disposal reflects HSBC’s group strategy for the region to zero in on the core markets of Brazil, Mexico and Argentina, HSBC Latin America’s CEO Antonio Losada said.