The Royal Bank of Scotland Group (RBS) is to
acquire a 10 percent stake in the Bank of China (BOC)
for US$3.1 billion, the two banks announced on Thursday.
"The RBS Board believes the size and growth of
China represents an important opportunity. The combination of BOC's
brand, distribution and customer base with RBS' product and
operational strengths and experience will be powerful in the
Chinese market," said RBS chairman Sir George Mathewson.
"RBS is an ideal partner," said Xiao Gang, BOC
chairman, adding that the move was "a substantial step in BOC's
joint stock reform, crucial to transforming operational structure,
enhancing internal management, improving competitiveness and
promoting profitability."
The deal, signed yesterday, is subject to
government and other relevant regulatory approval, said BOC.
BOC, one of China’s largest commercial banks, and
RBS, Europe's second largest and the world's sixth largest banking
group, will enter into broad cooperation in a range of areas
including credit cards, wealth management, corporate banking and
personal insurance.
In addition, the two intend to establish a close
relationship in major banking managerial areas, including corporate
governance, risk management, financial management, human resources
management and information technology.
According to the deal, RBS will also appoint a
representative to sit on the board of directors of BOC.
Wang Jianxi, Vice Chairman of Central Huijin
Investment Co. Ltd., the major BOC shareholder, said bringing in
international strategic investors is an important step in deepening
reform of state-owned commercial banks in China.
"Through strategic cooperation with RBS, BOC will
be able to further enhance corporate governance and internal
control. We are confident that it will produce positive results for
both sides," he said.
(Xinhua News Agency August 19, 2005)