HSBC UK Bank, announced on Monday that it has agreed to acquire Silicon Valley Bank U.K. (SVB) for £1 ($1.21), the assets and liabilities of SVB U.K.’s parent company are excluded from the transaction.
British Chancellor of the Exchequer Jeremy Hunt said the government and the Bank of England had facilitated the sale of Britain’s Silicon Valley unit to HSBC, a move that would protect deposits without taxpayer support.
“Deposits will be protected, with no taxpayer support,” Hunt tweeted, adding “I said yesterday that we would look after our tech sector, and we have worked urgently to deliver that promise.”
HSBC is the largest bank in Europe, and customers of Silicon Valley Bank in the United Kingdom should feel reassured about the strength and security, Hunt mentioned.
It comes after U.S. authorities moved to shore up deposits and stem any wider fallout from the sudden collapse of Silicon Valley Bank, which the British unit is tracking.
This morning, the Government and the Bank of England facilitated a private sale of Silicon Valley Bank UK to HSBC
Deposits will be protected, with no taxpayer support
I said yesterday that we would look after our tech sector, and we have worked urgently to deliver that promise
— Jeremy Hunt (@Jeremy_Hunt) March 13, 2023