Finance Minister blocked APS takeover bid despite PM’s backing

Finance Minister Clyde Caruana has blocked APS Bank’s attempted acquisition of HSBC Malta, in direct opposition to Prime Minister Robert Abela’s earlier assurances to the Church-owned bank, marking yet another blow to the Prime Minister’s credibility and authority.

The Shift has confirmed that APS Bank, led by CEO Marcel Cassar, held several meetings with the Prime Minister prior to announcing its interest in acquiring HSBC last September.

Abela repeatedly assured the bank that the government would not stand in the way and even offered to assist, if needed, in facilitating the deal.

However, the Finance Ministry and the Central Bank later made their opposition to the takeover clear, citing concerns about increased restrictions and reduced competition within Malta’s already limited banking sector, according to sources.

In light of these objections, APS ultimately withdrew its bid, in a move insiders describe as an attempt to stem mounting costs related to the failed acquisition.

When asked why the bank sought the Prime Minister’s involvement in a private-sector bid, APS CEO Marcel Cassar declined to comment.

He also did not respond to questions about whether he had engaged Ryan Pace—the Prime Minister’s former legal associate and one of his closest allies—as a consultant during the process.

According to sources within APS, his role was primarily to act as a liaison with the Office of the Prime Minister during the takeover discussions.

Church leadership under fire

The bank’s abrupt withdrawal, announced quietly on Maundy Thursday, has intensified pressure on Archbishop Charles Scicluna and Cassar to account for the failed initiative, which reportedly cost APS shareholders €2 million, largely in consultancy fees.

Senior clerics had voiced concerns from the outset, questioning whether the Church should be seeking to acquire Malta’s second-largest commercial bank.

Despite public denials that a final decision had been taken, sources close to the Curia say the Archbishop had given his full backing to the bid.

Calls for accountability are now mounting within the Church and shareholder circles.

Critics argue that the costly exercise was doomed from the start, not only due to ethical and religious considerations but also because APS lacked the capital strength to mount a viable challenge against a banking giant like HSBC.

There is growing discontent over the apparent lack of oversight, with some demanding that Archbishop Scicluna take decisive action.

Many are calling for consequences over what is being described as a misadventure that squandered €2 million of shareholder funds, most of which are ultimately controlled by the Maltese Church and the Diocese of Gozo, which together hold over 67% of APS shares.