HSBC Hawks LatAm Assets

HSBC is seeking to sell some of its assets in Latin America, including part of the bank’s insurance business, operations in smaller markets, as well as its Brazilian consumer finance arm, according to people familiar with the process. The bank is primarily seeking to sell off its property and casualty insurance business in Argentina and Mexico, where the bulk of that business lies, in a deal that could reach $1bn. Separately, HSBC is also seeking to shed several units in certain smaller LatAm countries, in what could be another $1bn deal. Finally, the bank is also looking to sell its consumer finance arm in Brazil. HSBC has retained Goldman Sachs as an advisor in the insurance sale process, and its own investment banking division is also advising in all three sales efforts, according to people with knowledge of the bank’s plans. A spokeswoman for HSBC declines to comment. Global and regional players have shown interest for the bank’s assets in LatAm, according to the people familiar, but noted that HSBC’s consumer finance arm in Brazil is a business that would likely make more sense for an established local bank that can leverage those assets.