BUENOS AIRES (Dow Jones)–Industrial and Commercial Bank of China Ltd. (IDCBY, 1398.HK, 601398.SH) plans to invest $100 million in Standard Bank Argentina once it receives regulatory approval to buy a majority stake in the company, according to a top executive at the Argentine bank.
In August, ICBC said it would pay $600 million for 80% of the Argentine subsidiary of Johannesburg-based Standard Bank Group Ltd. (SBGOY, SBK.JO) as part of its effort to follow Chinese clients as they expand globally.
Standard Bank’s focus is growing in Africa and ICBC «can do more» to develop the Argentine operations, Standard Bank Argentina President Myles Ruck said at a conference organized by the South African Embassy in Buenos Aires.
If approved by the Argentine authorities, the deal would mark ICBC’s second-biggest acquisition outside of greater China following its purchase of a 20% stake in Standard Bank Group Ltd. for $5.5 billion in 2007.
Standard Bank Argentina operates more than 100 branches that serve both retail and corporate customers and it is ranked No. 12 in the local banking system with 11.3 billion pesos ($2.6 billion) in deposits at the end of July, according to central bank data.
ICBC boasts a growing overseas presence. Early this year, it opened branches in Paris, Brussels, Amsterdam, Milan and Madrid. It also bought an 80% stake in the U.S. unit of Hong Kong’s Bank of East Asia Ltd. (BKEAY, 0023.HK) in January.
-By Shane Romig, Dow Jones Newswires; 54-11-4103-6738; shane.romig@dowjones.com
Source: /online.wsj.com