EMEA News
Shipping Services Firm in Management Buy Out
British multinational banking and financial services company HSBC Bank plc (HSBC) said Thursday it has agreed to sell its ship broking and consultancy unit HSBC Shipping Services Limited (HSBC Shipping Services) to members of its current senior management team.
According to the press release as at June 30, 2012 HSBC Shipping Services had consolidated gross assets of US $6.8m.
The business, which will be renamed Hartland Shipping Services (Hartland) on completion, will be acquired by a new company established for the purpose by the management team.
HSBC said post sale the HSBC Group will continue to provide a full range of banking products and non-broking and associated consultancy services to the shipping industry, with a consultancy agreement being put in place such that Hartland will provide shipping-related valuation and consultancy services to the HSBC Group on a global basis.
The sale is part of a three year plan to pull back from unprofitable markets which has seen it dispose of 28 businesses and cut 15,000 staff from its payroll.
"The sale represents further progress in the implementation of the group's strategy," it said.
The deal is expected to complete in the fourth quarter.
German bank Commerzbank said in June it would wind up its ship finance and commercial real estate units as stricter liquidity requirements force it to cut back on capital intensive activities.
