APS Bank withdraws from bidding process for HSBC Malta acquisition

APS Bank has officially withdrawn from the bidding process to acquire HSBC Malta, citing confidential information external to its due diligence process as the primary reason behind the decision.

The bank had previously expressed optimism about acquiring the 70% stake in HSBC Bank Malta held by HSBC Holdings. APS Bank had submitted a non-binding offer for the acquisition last November, and earlier this month reiterated its interest in expanding its operations through the purchase of the local HSBC branch.

Despite this initial optimism, APS Bank’s leadership, supported by both local and international advisers, determined that confidential information external to the due diligence process led them to reassess the opportunity. The bank did not provide further details on the nature of this information but said that it was in the best interests of the bank’s shareholders, employees, and customers to step back from the bidding.

In a statement, the bank expressed its appreciation for the management and employees of HSBC Bank Malta, noting that a potential merger could have been a strategic initiative with significant long-term benefits. The bank also thanked its key shareholders, AROM Holdings Ltd and the Diocese of Gozo, as well as its advisers, including Alvarez & Marsal, Ganado Advocates, Rizzo Farrugia & Co (Stockbrokers) Ltd, and Allen & Overy Shearman Sterling, for their support during the process.

APS Bank reassured its stakeholders that, despite withdrawing from the HSBC Malta acquisition, it remains committed to growth and is open to exploring other strategic opportunities in the future. The bank’s Board of Directors promised t to upholding the highest standards of governance, transparency, ethics, and financial rigour.

APS Bank will provide further updates on its financial performance at its upcoming Market Briefing on 24 April, where it will present its 1Q2025 results.

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