HSBC Holdings Plc will appoint Nicolas Moreau as the chief executive of the lender's $500 billion asset management business, Sky News reported on Tuesday.

Moreau, former head of Deutsche Bank's DWS unit, replaces Sridhar Chandrasekharan, who has run the business for the last eight years, Sky News said.

His appointment will be announced on Wednesday and he is expected to be based in Hong Kong, Sky News said.

Moreau will likely be given a mandate to explore a combination of the arm with a rival through a merger or a takeover, Sky News added.

HSBC did not immediately respond to Reuters' request for comment.