The banking regulator has approved Industrial and Commercial Bank of China (ICBC) to buy a stake in a South African bank, ICBC officials said.
ICBC, China's biggest lender, said in October last year it would buy a 20percent stake in South Africa's Standard Bank, the largest commercial bank in Africa, for $5.46 billion.
The deal has already been approved by shareholders of both banks along with regulators in South Africa, including the South African Registrar of Banks and the Johannesburg Securities Exchange.
ICBC officials said examination and approval procedures by local regulators for overseas branches of Standard Bank were under way.
The strategic collaboration, which allowed ICBC to become the top shareholder of the Johannesburg-listed Standard Bank, "is conducive to the further deepening of Sino-African economic and trade cooperation", Jiang Jianqing, ICBC's chairman, said when the deal was first announced.
"From a strategic perspective, ICBC has been seeking opportunities to expand its international business, in particular in Africa, given strong trade links and the close and longstanding friendship between China and South Africa.
"As many of our large clients seek investments in Africa, the demand for cross-border financial services is accelerating. Standard Bank, with its market-leading position in South Africa and a true pan-African footprint, represents the best organization with which ICBC can partner," Jiang said.
Standard Bank has 1,501 branches and a presence in 18 African countries and major financial centers in Europe, North America and Asia.
Jacko Maree, Standard Bank Group chief executive, said: "A partnership between Standard Bank and ICBC is attractive as each party brings numerous complementary benefits to the relationship. Both banks can benefit through the creation of new revenue streams, access to the new partner's expertise and sharing distinctive local market knowledge and expertise."
According to Pan Gongsheng, an ICBC executive in charge of the bank's merger and acquisition business, it's possible that ICBC will complete another acquisition deal this year.
The bank still plans to buy into Thailand's ACL bank, even though Bangkok Bank postponed the sale of a 19.3percent stake in ACL to ICBC, which was set for the end of 2007.
The sale is on hold pending Thailand's new commercial law that's expected to lift the foreign stakeholder limit from 25 to 49 percent.
Source: China Daily
|
Comment
Tell A Friend
Print Format
Save Article