The Industrial and Commercial Bank of China (ICBC) Tuesday announced it has taken a 20-percent stake in a South African bank.

ICBC, China's biggest lender, got approval on the deal from the China Banking Regulatory Commission on January 23 and from the South African Registrar of Banks on October 24, 2007.

The deal has also been approved by shareholders of both banks along with industry regulators. ICBC announced on October 25, 2007 that it had agreed to acquire a 20-percent stake in South Africa's Standard Bank. According to ICBC's Tuesday announcement, the Chinese bank has acquired 305 million shares from the South African bank.

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 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 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."