HSBC Strikes Deal For Grupo Banistmo

HSBC, one of the world’s largest banks, has agreed to pay $1.77 billion for Grupo Banistmo, 2.89 times the book value of the Panamanian bank as of the end of March. The acquisition would be the largest in the region and will allow the UK bank to consolidate its position in Central America. The purchase will be carried out via a public share offering on the Panama Securities Exchange. Banistmo, Central America’s largest financial institution, has operations in Panama, Costa Rica, Honduras, Nicaragua, Colombia and El Salvador.