Bank Of Valletta has confirmed it will not pursue any bid for HSBC Malta, issuing a formal company announcement stating that it does not intend to engage in transactions that could be seen as increasing market concentration in the local banking sector.

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The announcement, issued on Wednesday afternoon, follows public comments by Finance Minister Clyde Caruana reiterating that Malta needs more banking options, not fewer. Caruana made the remarks when asked by journalists outside Parliament about the possibility of BOV joining a consortium to acquire HSBC Malta. He made similar comments when asked about APS Bank’s now withdrawn bid.

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“The Bank is clarifying that it is not interested in entering into transactions which would be — or could be perceived as — directly increasing market concentration in the banking industry,” BOV said. “Consequently, the Bank will not be pursuing any transaction relating to the acquisition of shares in HSBC Bank Malta p.l.c.”

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The clarification comes days after MeetInc revealed that BOV had been approached to join a local business consortium bidding for HSBC Malta. The consortium, which includes the Azzopardi Group, Alf Mizzi, and Virtu Holdings, had reportedly approached BOV following the withdrawal of APS Bank and Hungary’s OTP Bank.

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In company announcement BOV confirmed that it had been approached regarding a bid for HSBC Malta but said no decision had been made. The Bank also stated it would act in full compliance with regulatory obligations and internal governance standards.

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Remaining contenders include German fintech firm RS2 and two unnamed non-EU banks. HSBC is expected to select a preferred bidder by the end of spring, with regulatory clearance to follow in the second half of the year.

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