Bidders Line Up for HSBC's German Fund Administration and Custody Units
By Amy-Jo Crowley and Emma-Victoria Farr
FRANKFURT/LONDON (Reuters) –
State Street, BNP Paribas, and Caceis are showing interest in acquiring HSBC Germany's fund administration unit INKA and its custody business, according to three sources close to the matter. The sale process is expected to begin in the next few weeks, once HSBC finalizes with its advisers whether to sell the assets together or separately.
HSBC anticipates the combined valuation for INKA and the custody unit could surpass 700 million euros ($751.17 million), one source indicated.
Other potential buyers include Universal Investment, owned by private equity firm Montagu, which may bid for INKA. Meanwhile, BNP Paribas and State Street are primarily interested in HSBC's custody business, another source mentioned. HSBC, State Street, BNP Paribas, Caceis, and Montagu did not comment on the matter.
INKA is a leading fund administrator, managing around 400 billion euros of assets as of the end of 2023. It had 51 billion euros in net cash inflows in 2023, making up almost 22% market share.
The custody business might also appeal to buyers like Caceis, which already operates in this sector. Another source noted that Caceis boasts 4.7 trillion euros of assets under custody and 3.3 trillion euros of assets under administration based on fiscal year 2023 figures.
($1 = 0.9346 euros)
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