HSBC, a London-based multinational banking and financial services holding company, is considering to buy the business units of Aviva in Asia. Accordingly, the plan is entering its early stages.
HSBC Holdings is looking for ways to diversify its business reach in Asia. Thus, when Aviva intends to put its units in Asia on the open market, it is a good opportunity for HSBC.
However, both companies do not want to share any statements pertaining to the issue. Additionally, Finews Asia reported that the consideration is uncertain, so conclusions of the purchase remains unknown.
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HSBC acquired most of its profit from Hong Kong. Due to the protest, the company is facing a hard time at the moment. Moreover, China does not present a good reaction for the company as well.
Meanwhile, the British conglomerate Aviva has six Asian businesses in different countries. They include China, Hong Kong, India, Indonesia, Singapore, and Vietnam.
Out of them, only the ones in Singapore and Vietnam are wholly-owned businesses with the Singaporean unit contributes almost half of the operating profits.
Nonetheless, the Asian businesses gained a 26% rise of profits to 284 million pounds in 2018. Despite the profit, the firm aims to sell those units as part of new chief executive’s Maurice Tulloch turnaround strategy.
Aviva to Sell Their Asian Businesses
Aviva, a British life and general insurer, is currently contemplating on selling their Asian units. Accordingly, this is part of Maurice Tulloch’s turnaround strategy to cut operation expenses and save more money.
In addition, the firm’s operation in Asia costs approximately US$3 up to US$ 4 billion. This is a continuation of the strategy to reconstruct its operation in UK, intending to save US$ 362.82 million a year in costs.
Regarding the plan, Aviva has been working with a financial adviser on possible sale ever since. Sources told Reuters that the unit might have value of more than US$ 2 billion.
In accordance with the plan, Aviva refused to comment.
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