BNP Paribas ADR (OTC:BNPQY) announced Friday that it will acquire the German custody and depositary bank operations of HSBC Continental Europe S.A., a subsidiary of HSBC Holdings PLC ( HSBC ) . The deal, which is subject to regulatory approval, did not disclose financial terms.

BNP Paribas ( BNPQF ) reports that the acquisition aims to expand BNP Paribas’s Securities Services division and boost its presence in Germany’s institutional funds and financial intermediary sectors.

Patrick Colle, Head of Securities Services and Chairman of Financial Institutions Coverage at BNP Paribas ( BNPQF ), said the move aligns with the bank’s global-local strategy and will strengthen its offerings for institutional clients.

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Lutz Diederichs, CEO of BNP Paribas Germany, said the deal supports the firm’s targeted growth in Germany, one of its core markets. He noted the bank’s comprehensive service portfolio across 12 business lines, from Global Markets to Wealth Management.

As part of the agreement, HSBC’s custody staff in Germany will join BNP Paribas ( BNPQF ). A phased client migration is scheduled to begin in early 2026 to ensure a smooth transition.

Thorsten Gommel, Regional Head for Germany, Austria, Netherlands, and Nordics at BNP Paribas Securities Services, added that the acquisition will allow the bank to scale its operations and expand its product offering across the region.

With 14.3 trillion euros (approximately $16.73 trillion) in assets under custody, BNP Paribas ( BNPQF ) continues to reinforce its leadership in Europe’s financial infrastructure.

Related ETFs: iShares MSCI Europe Financials ETF ( EUFN ) , SPDR Euro Stoxx 50 ETF .

Price Action: HSBC ( HSBC ) shares are trading higher by 0.48% at $60.77 at the last check Friday.

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