The China Banking Regulatory Commission has approved a plan by
the Industrial and Commercial Bank of China (ICBC) to take a stake
in a South African bank, ICBC officials confirmed on Sunday.
ICBC, China's biggest lender, announced on Oct. 25, 2007 that it
had agreed to acquire a 20-percent stake in South Africa's Standard
Bank, the largest commercial bank in Africa, for 5.46 billion U.S.
dollars.
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 that examination and approval procedures by
the 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-Africa
economic and trade cooperation,"Jiang Jianqing, ICBC's chairman,
said upon initial announcement of the deal.
"From a strategic perspective, ICBC has been seeking
opportunities to expand its international business, in particular
in Africa, given strong trade linkages 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 added.
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, a ranking ICBC executive in charge
of the bank's merger and acquisition business, it's possible that
ICBC will complete another acquisition deal in 2008.
The bank still plans to buy into Thailand's ACL bank, even
though Bangkok Bank postponed the sale of a 19.3-percent stake in
ACL to ICBC, which had been set for the end of 2007.
Bangkok Bank's sale of the ACL stake will wait for the
promulgation of Thailand's new commercial law in 2008, which is
expected to raise the stake foreign-funded enterprises may hold
from 25 percent to 49 percent.
Kulathida Sivayathorn, executive vice president of Bangkok Bank,
said in mid-December that ICBC might purchase another 30.6 percent
of ACL from the country's Ministry of Finance.
ICBC would hold a 49.9-percent stake in ACL bank if both deals
succeed.
Pan said that U.S. financial institutions, battered by the
sub-prime mortgage crisis, might also be on ICBC's list "if such a
deal facilitates our strategic development."
ICBC agreed to acquire a controlling stake in Indonesia's Halim
Bank in December 2006 and Macao's Seng Heng Bank in August
2007.
Jiang said: "International business accounts for only three
percent of all our business and we hope to increase the proportion
to ten percent."
Listed in Shanghai and Hong Kong, the ICBC overtook Citigroup in
July 2007 as the world's biggest bank by market capitalization.
(Xinhua News Agency February 3, 2008)
