LONDON (Reuters) - HSBC's planned sale of its French retail banking business to Cerberus-backed My Money Group may fall through due to interest rate rises in France, the British bank said on Friday.
Rate hikes have increased the amount of capital required by the enlarged purchaser after completion, HSBC said.
"Unless this issue is addressed, the Purchaserwill be unable to obtain regulatory approval for the Transaction," HSBC said.
HSBC announced the proposed deal in June 2021 at a nominal price of one euro.
(Reporting by Lawrence White; Editing by Mark Potter)