Finance Minister Clyde Caruana cautioned on Tuesday that HSBC’s takeover process cannot drag on indefinitely, warning that prolonged uncertainty could negatively affect shareholders, employees, and the broader economy.
Caruana acknowledged that a transaction of this magnitude is complex and time-consuming, but said an extended delay would be far from ideal for consumers, businesses, and Malta’s financial stability.
He was speaking at a press conference, just days after APS Bank withdrew withdrew from the bidding process.
“It’s been eight or nine months since the initial announcement,” Caruana said, adding that he understood that these procedures must follow a due course, but there has to be an endpoint.
“For the sake of shareholders, workers, the business community, and the economy, this process must conclude. It cannot take forever. The timeframe must remain within reason,” Caruana said.
The effort to find a buyer for HSBC Malta began in September, when the international banking group revealed it was considering a withdrawal from the local market.
Church-owned APS Bank quickly emerged as a frontrunner in the acquisition race.
Last Thursday, however, APS Bank abruptly announced it was “regretfully withdrawing” from the bidding process, pointing to confidential information it obtained outside of official due diligence as a key factor in its decision.
The Sunday Times of Malta also reported that the deal had sparked alarm among senior Church figures over alleged plans for large-scale job cuts. APS denied these allegations, dismissing them as “lies” and “evil machinations.” It maintained that redundancies were never discussed at any point in the negotiations and reaffirmed its commitment, particularly to Church leaders, to avoid layoffs.
On Tuesday, Caruana confirmed that other potential buyers remain in the running to acquire HSBC Malta, though he declined to name them.
“What I will reiterate,” he said, “is the importance of increasing competition in the sector, not reducing it. Whoever ends up taking over HSBC must also be a player with a strong and reputable track record,” Caruana said.