TNAG-2474-FCO40-3604-Business-matters-in-Hong-Kong-acquisition-of-Midland-Bank-by-1992 — Page 79

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

21/05/92

21/05/92

28:17

UKREP EC 32 2 2978267

203

2

The combinad aggregate turnover of HSBC and Midland in 1991 was more than 6,000 million ECU (asioulation based on one tenth of total assets of both parties). The aggregate Community-wide turnover of each is more than 250 million ECU. The parties do not achieve more than two-thirds of their Community-wide turnover in one and the same menber state. The operation therefore fall within the scope of the EC's merger regulation.

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in overall terme, the two undertakings are geographically complementary. There la no appreciable overlap either in Britain or in any other Member State in any of the sectors analysed by the Commission. These include retail deposits, retall landing, other forms of retail banking (including oredit and debit cards and travellers' cheques), corporate banking, trade finance, correspondent banking, treasury desling, merchant banking, Igasing, securities broking, investment management, pansion services, trustes services, Insurance broking, and insurance underwriting.

The only relevant product market identified where the merger would lead to a potentially significant overlap between the two companies is that of alt-edged stock market-making, a means of financing the UK public sector OP government-guaranteed stocks defloit by Issuing UK government denominated in sterling. Even in this sector, in which « Midland and an HSBC subsidiary each operate as market makers in the UK, competition is aftar the merger- intense and would rem i 19

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