Negotiations in the HSBC-RBS Transaction
A brief look at the successful negotiations between the HSBC and Royal Bank of Scotland (RBS) in the sale of RBS' Indian banking division.
# 152732 | 796 words | 3 sources | APA | 2013 |
Published on Apr 24, 2013 in Business (Companies) , Business (Finance, Investment and Banking) , Communication (General)
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The paper discusses how one of the biggest global banks, HSBC, has completed negotiations with the Royal Bank of Scotland (RBS) for the sale of RBS' Indian banking division. The paper relates that it is likely RBS and HSBC were engaged in a distributive negotiating style, usually known as the "win-win bargaining techniques," and fortunately, there were no major conflicts reported since each of the parties involved came out with the end result they wanted. The paper posits that this deal with RBC has been one of the win-win negotiations conducted by global banking industry giants.
From the Paper:"Globalization and emerging technologies have been facets of business, industry, economics, government and politics for the last couple of decades. One of the results of which is the various integration of businesses and industries not only on the local and regional levels but global and transnational ones as well. With various deals and negotiations going on even if the world is still feeling the pinch from the global economic turmoil, it is an exciting time to analyze the various negotiation strategies conducted by different entities all over the world. Of late, one of the biggest global banks, HSBC, has completed negotiations with the Royal Bank of Scotland (RBS) for the "sale of [RBS'] Indian banking division [and] the taxpayer-owned firm has offloaded its $95 million (L62.5 million) unit in an attempt to reduce costs. HSBC expect the deal to be completed by the first half of 2011, subject to regulatory approval. (The Gap Partnership, 2010)" Although there was no detailed reason for the sale of RBS India to HSBC, it seems that cost reduction with its various business operations is the primary reason. This is quite apparent especially since RBS has already offloaded several of its global banking assets such as those "in Argentina, Kazakhstan, Pakistan and the United Arab Emirates in the past month (The Gap Partnership, 2010)."
Sample of Sources Used:
- Carney, M. (2008, February 18). The implications of globalization for the economy and public policy. [Online] Retrieved August 12, 2010 from, http://www.bankofcanada.ca/en/speeches/2008/sp08-2.html.
- The Gap Partnership. (2010, July 2). HSBC acquires RBS Indian unit in $95m deal. [Online] Retrieved August 12, 2010 from, http://www.thegappartnership.com/news/2010/july/hsbc-acquires-rbs-indian-unit-in-95m-deal.aspx.
- Lagace, M. (2006, October 2). Negotiating in three dimensions. Harvard Business Review. [Online] Retrieved August 12, 2010 from, http://hbswk.hbs.edu/item/5497.html.
Cite this Term Paper:
Negotiations in the HSBC-RBS Transaction (2013, April 24) Retrieved February 26, 2020, from https://www.academon.com/term-paper/negotiations-in-the-hsbc-rbs-transaction-152732/
"Negotiations in the HSBC-RBS Transaction" 24 April 2013. Web. 26 February. 2020. <https://www.academon.com/term-paper/negotiations-in-the-hsbc-rbs-transaction-152732/>