United Overseas Bank says it has entered into asset purchase agreements with HSBC Bank USA, The Hongkong and Shanghai Banking Corporation and HSBC Bank (Taiwan) for US$15 million ($20 million).

Under the agreement, UOB will acquire from HSBC the physical assets of its banknotes business in Singapore, Hong Kong, Japan, Beijing and Taiwan.

HSBC will also license to UOB the technology system used in connection with the banknotes business; and HSBC will work with UOB to facilitate the signing of new contracts between UOB and customers and staff of HSBC’s banknotes business.

The transaction is expected to significantly grow UOB’s banknotes business in the region.

Completion of the transaction is expected to take place in the fourth quarter of this year.