(8 November 2006 – China) ANZ is set to expand its footprint in China by taking a 19.9 percent stake in Shanghai Rural Bank, according to reports.ANZ already owns a similar stake in Tianjin City Commercial Bank, for which it paid US$120 million last December.
ANZ chief executive John McFarlane will fly to China at the end of this month according to sources and could ink a deal to pay up to US$500 million for the Shanghai bank.
Shanghai Rural Bank is almost twice the size of Tianjin City Commercial Bank.
ANZ already has a relationship with Shanghai Rural Bank after it signed a technical alliance in 2003 with a credit cooperative that became Shanghai Rural Commercial Bank.
ANZ has confirmed talks between the two parties are taking place.