(05 April 2013 – Taiwan) Industrial & Commercial Bank of China (ICBC) Ltd plans to buy a 20 percent stake in Taiwan’s Bank SinoPac.This is the first mainland investment in a Taiwan lender. The purchase price will be between NT$18.7 billion (A$598 million) and NT$23.5 billion and either party can cancel the agreement after a year.
Bank SinoPac or SinoPac Financial Holdings Company Ltd and other Taiwanese banks stand to benefit from partnerships with mainland lenders such as ICBC, the world’s largest bank by market value, as they expand outside Taiwan’s saturated market.
ICBC said the deal will “deepen financial cooperation and promote economic and trade exchanges across the strait.”
Analysts said the deal is positive for SinoPac as there are too many banks in such a small market as Taiwan. They believe banks in Taiwan can expand in the China market through mutual investment with Chinese banks.