HSBC sells Mexican pensions management business

12th Apr 2011 07:05

Grupo Financiero HSBC, a Mexican subsidiary of global banking giant HSBC, has agreed to sell its pension funds management business, HSBC Afore, for around $198m.US firm Principal Financial Group has agreed to pay 2,360m Mexican pesos in cash for HSBC Afore. The two parties will work together to ensure a smooth transition and have agreed to establish an exclusive distribution agreement, under which Principal will continue the sale and servicing of its pension fund products through the Grupo Financiero HSBC retail banking network in Mexico.The transaction is subject to regulatory approvals. It is expected to complete in the third quarter of 2011. ---jh