HSBC chasing S Korea stake
(20 August 2007 – South Korea) HSBC is set to buy a majority stake in Korea Exchange Bank, which is owned by US private equity fund Lone Star.
KEB, which is valued at US$4.5 billion and is the country’s fifth largest lender, was almost bought by South Korea’s Kookmin Bank for US$7.3 billion in 2006.
However, a legal dispute between Lone Star and South Korean authorities killed the deal and also put off Singapore’s DBS, which was also interested in KEB.
The South Korean government is not keen on new entrants in what is already a crowded banking market, meaning foreign banks interested in tapping the South Korean market may have to consider acquisitions as a strategy.
However, a legal dispute between Lone Star and South Korean authorities killed the deal and also put off Singapore’s DBS, which was also interested in KEB.
The South Korean government is not keen on new entrants in what is already a crowded banking market, meaning foreign banks interested in tapping the South Korean market may have to consider acquisitions as a strategy.
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