Bank of Valletta has confirmed it was approached to participate in a bid to acquire HSBC Malta, following a news report published by MeetInc earlier this week. In a company announcement issued on Monday, BOV acknowledged that it had been approached by third parties expressing interest in its potential participation. It said that no decision had been taken and that any future move would be made in full compliance with its regulatory obligations and internal governance processes, implying that the matter was still under consideration.

“As one of Malta’s leading financial institutions, it is unsurprising that the Bank has been approached,” it said. “The Bank will continue to monitor developments closely and remains committed to ensuring transparency and full compliance… whilst maintaining its duty of care to its shareholders.”

The announcement comes as the HSBC Malta sale process enters its final stages. HSBC is expected to select a preferred bidder in the coming weeks, following an initial round of discussions with interested parties. Six bidders initially expressed interest, but the field has narrowed. APS Bank withdrew from the race last week, citing credible information obtained externally to the due diligence process. Hungarian bank OTP is also understood to have withdrawn from the race. This leaves German fintech company RS2, two unnamed non-EU banks, and a local business consortium as the main contenders.

The local consortium is understood to include major players such as the Azzopardi Group, Alf Mizzi, and Virtu Holdings, with BOV having been approached as a result of others dropping out. While BOV has not confirmed whether it intends to join, its potential involvement has been framed as that of one investor among others — potentially addressing concerns around market concentration. Meanwhile, Finance Minister Clyde Caruana has reiterated that any buyer must have a solid reputation and that the goal should be to increase competition in Malta’s banking sector. The European Central Bank is also reported to have expressed concerns about the prolonged negotiations, warning that further delays could pose risks to financial stability. HSBC announced a strategic review of its Malta operations back in September 2024. While a decision is expected within weeks, final negotiations and regulatory approvals are likely to extend the timeline into the second half of the year.