HSBC Holdings is considering a bid for Aviva’s Asian operations, as it looks for ways to diversify its business in the region.
London-based HSBC is in the early stages of weighing an offer for at least part of Aviva’s Asian business. A deal would help HSBC bolster its insurance presence in Singapore and other parts of Southeast Asia, Bloomberg reported, quoting people familiar with the matter. There’s no certainty the deliberations will result in a transaction, the people added.
Hong Kong, where HSBC generates more than half of its pretax profit, has been roiled in recent protests, leaving shareholders and staff concerned about the lender’s growth prospects. Its tense relations with Beijing over the Huawei incident has fuelled other sets of concerns.
Aviva, the UK insurance conglomerate has announced its intention to put up its Asian business for sale, as part of new chief executive’s Maurice Tulloch turnaround strategy for the firm. The company’s operations in the region could be valued at about $3 billion to $4 billion.
Other suitors are also considering bids for the Aviva assets, the people told Bloomberg. Representatives for HSBC and Aviva declined to comment.