Korea's state-run KDB Financial Group Inc.'s efforts to buy local branches of HSBC Holdings Plc are moving forward without any problems, its head said Tuesday, indicating that it is near signing a preliminary deal with the British bank.
"Efforts to acquire HSBC branches are going smoothly beyond the (expected) signing of a memorandum of understanding," KDB Financial Chairman Kang Man-soo told reporters on the sidelines of a charity event.
The British banking giant currently operates 10 branches in South Korea.
Kang's remarks came amid market talk that negotiations between the two sides had hit a snag due to differences over the price.
KDB Financial has expressed its willingness to acquire a commercial bank as the group needs to bolster its deposit base ahead of its privatization.
The government, which owns 100 percent of the group, should start to reduce its stake no later than May 2014 under the current blueprint for KDB's privatization.
The group's previous attempt to buy Woori Finance Holdings Co. fell through in mid-June when the Financial Services Commission, the nation's financial watchdog, scrapped a plan to sell the top banking group amid public backlash. (Yonhap)