HSBC & Global Payment To Exte

RNS Number : 2315A

HSBC Holdings PLC

30 July 2008

 



30 July 2008

HSBC AND GLOBAL PAYMENTS TO EXPAND ASIA JOINT VENTURE

The Hongkong and Shanghai Banking Corporation Limited ("HSBC" or "the bank") has entered into an agreement with Global Payments Inc. ("Global Payments"), a leading provider of electronic transaction processing solutions, to transfer the bank's merchant card processing services in the Philippines to Global Payments Asia-Pacific Limited, a joint venture in which Global Payments holds a 56 per cent interest and HSBC holds the remaining 44 per cent. Under the terms of the agreement, the merchant business was valued at approximately US$20 million and HSBC will receive from Global Payments a cash consideration, equating to its 56 per cent interest, of approximately US$11 million at current exchange rates. 

The deal, which is expected to be completed by the end of September 2008 and is subject to regulatory approval and certain customary closing conditions, expands the joint venture's direct acquiring processing capabilities into the Philippines. 

HSBC and Global Payments recently announced an agreement for a joint venture in the UK, and the two companies also have sales-and-referral agreements in the United States and Canada.

Global Payments Asia-Pacific (Philippines) will be based in Bonifacio Global City and have an initial complement of about 20 employees. No redundancies are expected.

Under the new arrangement, the Philippines will be included in the current ten-year marketing alliance under which HSBC exclusively refers new merchant customers to the joint venture for payment processing services.

Media enquiries to: 

Johanna Garcia                         Cat Avelino

[phone]                      [phone]

[e-mail]    [e-mail]

Notes to editors:

   HSBC in the Philippines

The HSBC Group has been doing business in the Philippines for over 132 years and currently employs over 8,000 people. 

Global Payments Inc.

Global Payments Inc. is a leading provider of electronic transaction processing services for consumers, merchants, independent sales organisations, financial institutions, government agencies and multinational corporations located throughout the US, Canada, Latin America, the United Kingdom and Europe. Global Payments offers a comprehensive line of processing solutions for credit and debit cards, business-to-business purchasing cards, gift cards, electronic cheque conversion and cheque guarantee, cheque verification and recovery, as well as terminal management. The company also provides consumer money transfer services from the US and Europe to destinations in Latin America, Morocco and the Philippines. 

Global Payments Asia Pacific Limited

Global Payments Asia Pacific Limited is the two-year-old joint venture established by HSBC and Global Payments that already covers 10 countries and territories in Asia: Brunei, the Hong Kong Special Administrative Region (SAR), India, the Macau SAR, mainland China, Malaysia, Maldives, Singapore, Sri Lanka and Taiwan.

HSBC Holdings plc

HSBC Holdings plc serves over 128 million customers worldwide through around 10,000 offices in 83 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With assets of some US$2,354 billion at 31 December 2007, HSBC is one of the world's largest banking and financial services organisations. HSBC is marketed worldwide as 'the world's local bank'.

 

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