First Niagara sells HSBC branches to KeyBank
First Niagara is selling some of its HSBC locations in the US.
Financial services company First Niagara is selling some of HSBC branches to KeyBank as a result of successful business negotiations with the US Department of Justice.
As many as 26 locations will be purchased by KeyBank in upstate New York in a deal agreed to fulfil divestiture requirements.
The Department of Justice approved the acquisition of HSBC branches by First Niagara in November on the condition that it gave up some of its assets in this region so as not to create a monopoly on the industry.
Even when the outlets are sold to KeyBank, First Niagara will still benefit greatly from the deal, increasing the number of locations it owns to more than 400, its headcount to over 6,000 and its assets and deposits to $38 billion (£24.7 billion) and $30 billion respectively.
"The outcome will be another significant and positive step toward realising our vision for establishing a regional leadership position in the northeast," John Koelmel, president and chief executive officer of First Niagara, stated.
At the end of trade yesterday (January 12th), shares in the company had risen by 3.3 per cent.
Posted by David Gleck
Source: First Niagara press release, January 12th