The deal to sell SVB UK to HSBC was sewn up overnight under the aegis of the UK Govt and the Bank of England.

HSBC (LON: HSBA) has acquired Silicon Valley Bank UK for £1 in a rescue deal that was confirmed by the UK Treasury. HSBC will take on the accounts of SVB UK’s 3,500 customers with deposits worth more than £6.7bn, and the customers will be able to access their deposits and banking services as normal.

The acquisition will not involve taxpayer money, and customer deposits have been protected. (Sifted)

The UK government and the Bank of England worked through the night to finalize the deal. The Bank of England said the transaction aimed to “stabilize SVBUK, ensuring the continuity of banking services, minimizing disruption to the UK technology sector and supporting confidence in the financial system.”

“Today’s announcement supersedes the Bank’s 10 March statement that, absent any meaningful further information, it intended to apply to the Court to place SVBUK into a Bank Insolvency Procedure,” said the Bank of England. “Given the emergence of a credible purchaser for SVBUK the Bank has determined that using its resolution powers for stabilizing failing banks is appropriate.”

Other parties had expressed interest in buying the bank, including the Bank of London.

Noel Quinn, HSBC Group CEO, said, “This acquisition makes excellent strategic sense for our business in the UK. It strengthens our commercial banking franchise and enhances our ability to serve innovative and fast-growing firms, including in the technology and life-science sectors, in the UK and internationally.”

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