HSBC Holdings Plc (HSBA.L) on Sunday said it will shed nearly half of its underperforming U.S. branch network, selling 195 branches to First Niagara Financial Group Inc (FNFG.O) for about $1 billion, and closing 13 others. The all-cash sale to First Niagara covers more than 40 percent of HSBC's roughly 470 U.S. branches, including 183 in upstate New York, six in New York City suburbs and six in Connecticut. It also includes $15 billion of deposits, $2.8 billion of loans and $4.3 billion of assets under management. Following the transaction, Buffalo, New York-based First Niagara expects to be significantly larger, with about 450 branches, $38 billion of assets and $30 billion of deposits. It expects to divest some branches to meet antitrust concerns. An early 2012 closing is expected, pending regulatory approvals. HSBC Chief Executive Stuart Gulliver in May set plans for Europe's largest bank to slash $3.5 billion of costs by cutting back in retail banking and selling its U.S. credit card unit, which has more than $30 billion of assets.
First Niagara Financial Group, Inc. provides a range of retail and commercial banking, as well as other financial services, through its wholly owned bank subsidiary, First Niagara Bank, N. Shares of FNFG fell by 0.33% or $-0.04/share to $12.25. In the past year, the shares have traded as low as $11.23 and as high as $15.10. On average, 2812290 shares of FNFG exchange hands on a given day and today's volume is recorded at 3160394.
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