HSBC, the UK-based banking giant, said Thursday it agreed to buy American credit card firm Metris for $1.59 billion to expand further into the US credit card industry.
Common shareholders of Metris will receive about $911.1 million, or about $15 per share, the two companies said Thursday in a joint statement.
HSBC also will pay $682.6 million to buy out the preferred stock in Metris held by Thomas H. Lee Partners LP, a private-equity firm, Xinhua reports.
The purchase is the third of a large U.S. credit card company in recent months, after Bank of America's $35 billion purchase of MBNA, and Washington Mutual's takeover of Providian Financial for $6.45 billion.
HSBC Finance is the sixth-largest U.S. issuer of MasterCard and Visa cards, while Metris is the 11th biggest.
The Metris purchase will increase the size of the London-based bank's credit-card business in the U.S. by almost a third.
The purchase is expected to close in the fourth quarter, subject to shareholder and regulatory approval and resolution of a possible US Securities and Exchange Commission enforcement action over Metris' accounting in 2001 for loan losses.
The Investigative Committee of the Russian Federation put the head of the contractor company of Russia's space corporation Roskosmos, Sergei Slastikhin, on international wanted list
"Washington operators of the sanctions machine ought to get acquainted with the history of Russia, to stop the unnecessary fussing," spokesperson for the Foreign Ministry said