Employees at HSBC Bank Malta are set to receive a total of €30 million in ex gratia payments following the signing of a tripartite agreement between the bank, CrediaBank, and the Malta Union of Bank Employees, marking a major breakthrough in a long-running industrial dispute linked to the bank’s takeover.

The settlement, announced on Thursday, is subject to the successful completion of HSBC Malta’s sale to CrediaBank as well as conditions relating to the bank’s profitability and capital soundness. The €30 million payout will be funded jointly by HSBC Bank Malta and its current majority shareholder, HSBC Continental Europe.

The agreement brings clarity and certainty for staff ahead of the ownership transition and removes a significant obstacle to the takeover process.

In a separate but related announcement, CrediaBank confirmed that it has entered into a definitive agreement with HSBC Continental Europe to acquire its 70.03% shareholding in HSBC Bank Malta for a cash consideration of €200 million. The transaction follows a previously announced put option agreement signed in September.

CrediaBank, HSBC Continental Europe and HSBC Bank Malta have also signed a cooperation agreement setting out their respective obligations to facilitate the implementation of the transaction.

Completion of the takeover remains subject to corporate and regulatory approvals, including clearance from the Malta Financial Services Authority, the Bank of Greece and the European Central Bank.

As part of the agreement with employees, CrediaBank reiterated its commitment to secure staff positions and contracts on materially the same terms for at least two years following completion of the transaction. The bank acknowledged the contribution made by HSBC Malta employees, particularly during the transitional period leading up to the change in ownership.

The industrial dispute had emerged earlier this year after MUBE argued that provisions in collective agreements entitled employees to compensation following a change in ownership. While HSBC Malta had contested that interpretation, negotiations continued over several months amid intermittent industrial action.

The newly agreed settlement formally resolves the dispute and clears the way for the takeover to proceed.

Once completed, the acquisition will mark a significant shift in Malta’s banking landscape, with CrediaBank assuming control of one of the country’s largest financial institutions. Both HSBC Bank Malta and CrediaBank said they will continue to keep the market informed in line with their obligations under the Capital Markets Rules.