HSBC completes takeover of Republic NY Corp

NEW YORK: British bank HSBC Holdings Plc said Friday it completed its purchase of Republic New York Corp and Safra Republic Holdings SA, a takeover with an aggregate value of $9.85 billion. HSBC said Republic shareholders will receive $72 per share in cash with payments starting on January 7. After close of business Friday, Republic National Bank of New York will convert to a New York state-chartered bank and will then merge with HSBC Bank USA. The newly merged bank will be named HSBC Bank USA.

The deal was cleared by the US Federal Reserve on December 6. Since it was announced in May, the takeover has encountered difficulties beyond the realm of regulatory acceptance. The takeover was tragically disrupted on Dec 3 when Edmond Safra, founder and major shareholder of Republic, was killed in a fire in his Monaco penthouse.

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