Hong Kong's ICBC to buy 80 percent interest of Bank of East Asia USA

[News_Editor]

Hong Kong's ICBC to buy 80 percent interest of Bank of East Asia USA

2011-01-24 09:39:50 GMT+7 (ICT)

BEIJING, CHINA (BNO NEWS) -- Hong Kong's Industrial and Commercial Bank of China (ICBC) will be buying 80 percent interest of Bank of East Asia USA for $140.23 million, ICBC said Sunday.

The two banks signed the agreement in Chicago, Illinois on January 21, in which Bank of East Asia will retain the remaining 20 percent stake in Bank of East Asia USA, according to China's state-run Xinhua news agency.

According to the terms of the agreement, after the transaction is completed - which is pending regulatory approval in both the U.S. and China - Bank of East Asia will have the put option to sell its remaining shares to ICBC.

"This unprecedented acquisition of a controlling stake in a U.S. commercial bank by a mainland bank is strategically significant," said ICBC Chairman Jiang Jianqing.

"Bank of East Asia and ICBC share a strong business relationship, and together we will continue to develop our strategic partnership for the benefit of our customers around the world," said David Li, Chairman and Chief Executive of Bank of East Asia, which operates 13 branches in New York and California.

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