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Investing.com — HSBC Holdings PLC (LON:HSBA) is in the early stages of exploring a sale of its Canadian subsidiary, according to statements from the bank quoted in media reports.
Sources first told Sky News that HSBC’s executive board has asked JPMorgan investment bankers to begin searching for prospective buyers.
The Financial Times reported that a possible transaction would be worth up to $9B.
Shares in HSBC were higher in late afternoon trading on Tuesday.
The deal is reportedly being spurred on by Chinese insurer Ping An (OTC:PNGAY), which owns a more than 8% stake in London-based HSBC.
It is thought that Ping An has urged HSBC board members to split the company from its operations in Hong Kong in a bid to boost growth and reduce potential regulatory tensions between the U.S. and China.
