HSBC pulls out of TD Waterhouse deal
(Australia) - Global bank giant HSBC has pulled out of a deal to buy the Australian online broking business of Canada's TD Waterhouse during the due diligence process.
HSBC is believed to have negotiated a price of around A$30 million for the operation, which is ranked fourth in the Australian online broking market with an 8 percent share.
Sydney based sources claim the bear equity market killed off the deal, with HSBC believing it could make cheaper acquisitions in the future.
TD Waterhouse purchased the Australian broking business of North American rival Charles Schwab last year, but its local business is still believed to be unprofitable.
Although its bottom line is improving, all unprofitable overseas subsidiaries have been put on notice by the parent company in Toronto.
Sydney based sources claim the bear equity market killed off the deal, with HSBC believing it could make cheaper acquisitions in the future.
TD Waterhouse purchased the Australian broking business of North American rival Charles Schwab last year, but its local business is still believed to be unprofitable.
Although its bottom line is improving, all unprofitable overseas subsidiaries have been put on notice by the parent company in Toronto.
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