HSBC buys Taiwan's Chailease Credit Services

17 January 2007

HSBC has announced that it agreed to purchase Chailease Credit Services, expanding its presence in the Asian commercial banking sector.

The UK-based global banking giant is acquiring 100 per cent of the Taiwanese factoring company for an undisclosed amount, pending regulatory approval.

Under the terms of the deal, HSBC will pay cash for Chailease Credit, which had a gross asset value of around $99.6 million at the end of 2005, and the transaction is likely to complete in the first quarter of this year.

President and CEO of HSBC's Hongkong and Shanghai Banking, Michael Smith, claims that the acquisition will create the "largest two-factor export business in Taiwan".

Taiwan has the second-largest factoring market in the world by value after Germany and Chailease Credit, the factoring unit of Chailease Finance, is the sixth largest factoring firm in Taiwan.

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