HSBC Holdings' plan to buy Republic New York Corp. may mean a boon in the long run for bondholders of the two banking companies, analysts said.

"Republic bondholders will benefit over the long term in having one of the world's largest and most profitable banks," said Carl de Jounge of Deutsche Bank Securities. "Republic was at disadvantage on its own, because it didn't have the scale and diversity that other large banking institutions do."

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