At least five parties are now vying to acquire HSBC Malta, significantly broadening what was once seen as a contest between a handful of suitors, MeetInc has learned from multiple sources.

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The bid submitted by Hungarian bank OTP remains on the table, as does one from a business consortium made up of mostly local companies, including the Azzopardi Group, Alf Mizzi and Virtu Holdings, alongside current Lombard Bank CEO Joe Said and other local and foreign investors. APS Bank, previously thought to be the frontrunner to complete the sale, withdrew its bid last week.

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Not much else is currently known about the identities or profiles of the remaining bidders, including whether they are banks, private equity funds, or other types of financial players. It is reasonable to assume that most—if not all—are foreign entities, given the limited number of domestic investors with the scale or appetite to execute a deal of this size.

Times of Malta reported that German fintech company RS2 has submitted a bid for HSBC Malta, promising to revive the Mid-Med Bank name and branding. When contacted, the company confirmed it had “been selected to submit a bid for HSBC Malta”.

The variety of potential buyers, each presumably with different investment goals, also raises the possibility that HSBC Malta may not be sold as a single package. One part of the business that could lend itself to a separate transaction is HSBC Life Assurance (Malta) Ltd, which is a separate company from the main bank. With a broader and more diverse group of bidders now in play, there is a greater chance that not all are interested in the full banking operation. 

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This could potentially open the door to a deal structure that splits the business according to different strategic interests.

Back when only APS and OTP were publicly known to be in the running, Finance Minister Clyde Caruana had expressed reservations about both. He cautioned against a domestic merger that could reduce competition and raised concerns about OTP and the risks it could pose to Malta’s reputation.

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Whether these new bids emerged in response to those concerns—or whether government helped pave the way for their entry—remains an open question. So too does the timing of these additional bids.

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Last week, APS Bank abruptly withdrew its bid, issuing a statement late Thursday evening citing “confidential information external to the due diligence exercise” as the reason for its decision.

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MeetInc understands the decision was taken at short notice, with key figures involved in the process continuing to work on the bid until just hours before the withdrawal was made public.

While APS has remained tight-lipped, the sudden nature of the move has fuelled speculation that Archbishop Charles Scicluna may have personally pulled the plug on the bid. In its response to allegations of potential job cuts as a result of the deal, a spokesperson for the bank pointed to assurances given to Scicluna that no redundancies were planned, while denying the “evil” allegations.

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While some have pointed to the Archbishop’s influence, a more grounded explanation may lie in the shifting dynamics of the sale itself. When APS believed it had a straight shot at the deal, its chances may have seemed realistic. But with new bidders entering the fray—and the government having openly expressed discomfort with a domestic takeover—the bank may have recognised that the odds were no longer in its favour. In a process that hinges on regulatory approval, it’s not unreasonable to assume that regulators could also align with the government’s preference for a foreign buyer.

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With more bidders now in play and negotiations continuing behind closed doors, the sale process appears to be gathering pace. While much remains unclear, there are likely to be developments over the coming days.