The final takeover of Royal Bank of Scotland's commercial and retail banking assets by HSBC has been finalized.

RBS was in talks with HSBC since quite some time regarding the sale.The total buyout of the assets would comprise an amount of $95 million over the tangible net asset value of the the businesses being acquired at the closing of the transaction, less an adjustment equal to 90% of any credit losses incurred on the unsecured lending portfolio in the two years subsequent to deal completion, an HSBC statement read.

The businesses that would be acquired by HSBC had a gross asset value of $1.8 billion as on March 31, 2010.

Depending on regulatory approvals, it is expected that the deal would be completed by June 2011.

Prior to HSBC finalizing the deal, Standard Chartered Bank and Australian ANZ were also in discussion to take part in the acquisition of RBS' assets.

However, both deals could not materialise as Standard Chartered could not reach an agreement on commercial terms and ANZ had to back out because under the Reserve Bank of India (RBI) rules it needed to have a banking licence owning such assets.