HSBC Bank Canada and HSBC Financial Corp Ltd. jointly announced that HSBC Bank Canada intends to acquire HSBC Financial Corp. Ltd. from HSBC Finance Corp. in the United States.

The planned transaction, which was announced Monday, is the result of an ongoing strategic review of the HSBC Group’s North American operations and is expected to close by the end of 2008, subject to regulatory and board approvals.

All of the financial guarantees between HSBC Finance Corp. and HSBC Financial Corp. Ltd will remain in place for all debt issued by HSBC Financial Corp. Ltd. prior to the closing.

HSBC Bank Canada has more than 180 offices and is the leading international bank in Canada. It had total assets of $67.4 billion at June 30.

HSBC Financial Corp. Ltd. had total assets of $5.2 billion at March 31. It offers a diversified range of consumer financial services to the Canadian public through a network of over 100 retail branches and other distribution channels. These services include consumer loans, mortgages and private label credit cards. They are offered by the company through four principal operating subsidiaries: HSBC Finance Corp. Canada; HSBC Retail Services Ltd.; HSBC Finance Mortgages Inc., and Household Trust Co.

Lindsay Gordon, president and CEO of HSBC Bank Canada, stated: “The HSBC Group has a global strategy of ‘Joining up the company’. As part of this strategy, HSBC Bank Canada will acquire HSBC Financial Corp. Ltd. to ‘Join up’ all members of the HSBC Group in Canada under one corporate structure. HSBC Bank Canada and HSBC Financial Corp. Ltd. are both successful companies and will continue to operate as separate businesses while sharing best practices as we build the HSBC brand in Canada.”

HSBC Bank Canada, HSBC Financial Corp. Ltd. and HSBC Finance Corp. are subsidiaries of HSBC North America Holdings Inc., which is a subsidiary of HSBC Holdings plc.