My Money Group, an entity under the control of Cerberus, announced in November 2021 the acquisition of the retail banking operations in France of HSBC Continental Europe (HBCE) for a symbolic amount of €1 aiming at resurrecting the Crédit Commercial de France (CCF) brand and aimed at closing the transaction in the second half of 2023.

The decision to sell the French operations was a consequence of the strategic refocus of HSBC from Europe and the US toward Asia. At the time of the announcement, CCF had a network of “800,000 customers, 244 branches and 3,900 employees, with close to €24bn in assets under management, a €21bn customer loan book and €19bn in deposits,” according to My Money Group.

However, HSBC announced on Friday that “significant interest rate rises since the sale terms were agreed and the related fair value accounting treatment on acquisition have made the completion less certain.”

A delay is therefore expected as some of the terms need to be amended, but HSBC stated that “parties remain committed to the sale.” It further added that Cerberus informed the UK banking group that the unexpected interest rate rises in France “will significantly increase the amount of capital required” resulting in Cerberus being “unable to obtain regulatory approval without amending the previously agreed transaction terms.”

In response to a request for comment, HSBC reiterated that it “remains committed to pursuing the sale of its retail banking business in France, providing appropriate terms can be agreed, and we continue to support our clients and colleagues” and that the “parties are continuing discussions.”

Delano also requested comment from My Money Group.