HSBC - The Bital Acquisition

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HSBC is one of the largest and most global financial institutions in the world. The company has identified Bital, Mexico's fourth largest bank, as a potential acquisition target. Negotiations have come down to the wire, and the controlling Mexican shareholders are trying to get HSBC to raise its offer. Is it worth it? HSBC must decide on both strategic and short-term financial criteria under some degree of uncertainty as illuminated by a due diligence process. The HSBC executive who has handled the acquisition at a local level, and would be chief executive officer of HSBC Mexico should the deal go ahead, is assessing the pros and cons of the acquisition and must also identify the priorities which he and his team would have to address, including culture change issues, re-branding Bital as HSBC Mexico, personnel issues and maintaining the continuity of the business.
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