HSBC <0005.HK>, Europe's biggest bank, said it would buy the onshore United Arab Emirates retail and commercial banking business of rival Lloyds , helping HSBC further strengthen its presence in the region.

HSBC, which confirmed an earlier Reuters story, added that the value of the gross assets being acquired stood at $769 million (484 million pounds) as of the end of December 2011.

HSBC is the leading international bank in the UAE and the addition of Lloyds' strong presence in retail and commercial banking is highly complementary to our business, said Simon Cooper, HSBC's deputy chairman and chief executive for the bank's Middle Eastern and North Africa (MENA) region.

The deal comes as Lloyds, which is 40 percent owned by the British government after a state bailout during the 2008 credit crisis, undergoes a restructuring plan to halve its international presence and cut 15,000 jobs.

(Reporting by Sudip Kar-Gupta; Editing by David Jones)