Midland Bank Is Acquired

The owner of the Hongkong and Shanghai Banking Corporation won its takeover battle for Midland Bank P.L.C. today, creating one of the world's 10 biggest banks at a cost of $:3.9 billion ($7.23 billion).

Hongkong and Shanghai said in a statement that it had received commitments for at least 63.58 percent of Midland's stock and that it would take control of the outstanding shares and complete the deal by July 10.

It is the costliest takeover in British banking history, giving HSBC Holdings P.L.C. a coveted position in the British market and a safety net for its Hongkong Bank subsidiary after the British crown colony reverts to Chinese rule in 1997.

HSBC is a British-registered company, but its banking subsidiary is based in Hong Kong. After control of Hong Kong passes to China, the bank will come under the jurisdiction of Chinese authorities.

A Midland spokesman said that with $268.6 billion in combined assets, the new group would rank among the world's top 10 banks.

HSBC's victory had seemed likely since a rival bidder, Lloyds Bank P.L.C., withdrew its $:3.7 billion ($6.85 billion) proposed offer.