HSBC Holdings plc, originally incorporated in England and Wales,[21] was a non-trading, dormant shelf company when it completed its transformation on 25 March 1991[3] into the parent holding company to the Hongkong and Shanghai Banking Corporation Limited now as a subsidiary, in preparation for its purchase of the UK-based Midland Bank and the impending transfer of sovereignty of Hong Kong to China. HSBC Holdings' acquisition of Midland Bank was completed in 1992 and gave HSBC a substantial market presence in the United Kingdom. As part of the takeover conditions for the acquisition, HSBC Holdings plc was required to relocate its world headquarters from Hong Kong to London in 1993.[22]
Major acquisitions in South America started with the purchase of the Banco Bamerindus of Brazil for $1 billion in March 1997[23] and the acquisition of Roberts SA de Inversiones of Argentina for $600 million in May 1997.[24] In May 1999, HSBC expanded its presence in the United States with the purchase of Republic National Bank of New York for $10.3 billion.[25]
2000 to 2010[edit]
Expansion into Continental Europe took place in April 2000 with the acquisition of Crédit Commercial de France, a large French bank for £6.6 billion.[26] In July 2001 HSBC bought Demirbank, an insolvent Turkish bank.[27] In July 2002, Arthur Andersen announced that HSBC USA, Inc., through a new subsidiary, Wealth and Tax Advisory Services USA Inc. (WTAS), would purchase a portion of Andersen's tax practice. The new HSBC Private Client Services Group would serve the wealth and tax advisory needs of high-net-worth individuals. Then in August 2002 HSBC acquired Grupo Financiero Bital, SA de CV, Mexico's third largest retail bank for $1.1 billion.[28]
In November 2002, HSBC expanded further in the United States. Under the chairmanship of John Bond, it spent £9 billion (US$15.5 billion) to acquire Household Finance Corporation (HFC), a US credit card issuer and subprime lender.[29] In a 2003 cover story, The Banker noted "when banking historians look back, they may conclude that [it] was the deal of the first decade of the 21st century".[30] Under the new name of HSBC Finance, the division was the second largest subprime lender in the United States.[31]
The new headquarters of HSBC Holdings at 8 Canada Square, London officially opened in April 2003.[32]
In July 2003, HSBC announced that it had a agreed to acquire 82.19% of the Korean fund administrator, Asset Management Technology (AM TeK), for $12.47 million in cash; it was the largest fund administrator in South Korea, with $24 billion of assets under administration.[33] In September 2003 HSBC bought Polski Kredyt Bank SA of Poland for $7.8 million.[34] In June 2004 HSBC expanded into China buying 19.9% of the Bank of Communications of Shanghai.[35] In the United Kingdom HSBC acquired Marks & Spencer Retail Financial Services Holdings Ltd for £763 million in December 2004.[36] Acquisitions in 2005 included Metris Inc, a US credit card issuer for $1.6 billion in August[37] and 70.1% of Dar es Salaam Investment Bank of Iraq in October.[38] In April 2006, HSBC bought the 90 branches in Argentina of Banca Nazionale del Lavoro for $155 million.[39] In December 2007 HSBC acquired the Chinese Bank in Taiwan.[40] In May 2008, HSBC acquired IL&FS Investment, an Indian retail broking firm.[41]
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