HSBC buys Silicon Valley Bank UK, protecting deposits

The U.K. government on Monday said that HSBC Holdings has acquired the British arm of troubled U.S. tech startup-focused Silicon Valley Bank, which failed on Friday.

“This morning, the Government and the Bank of England facilitated a private sale of Silicon Valley Bank UK to HSBC Deposits will be protected, with no taxpayer support I said yesterday that we would look after our tech sector, and we have worked urgently to deliver that promise,” British finance minister Jeremy Hunt tweeted on Monday.

HSBC Holdings said it paid a purchase price of £1 as part of the transaction.

Hunt had on Sunday said that the U.K. administration and the Bank of England were working to “avoid or minimize” potential damage resulting from the U.K. branch of SVB.

This is a breaking news story and will be updated shortly.