BNP Paribas to start small in China
(5 August 2005 – China) French bank BNP Paribas has ruled out making a major investment in one of China’s larger banks but said it would consider taking a stake in a mid tier bank in order to establish a foothold in China.
Speaking in Europe, BNP Paribas chief executive Baudouin Prot, said the bank was looking to invest somewhere between US$50 to 100 million in China, which could mean taking a 15 to 20 percent stake in one of China’s smaller commercial banks.
Prot said investing in a major Chinese bank was too risky and that the bank preferred to start with a smaller bank and grow organically.
The bank has licenses to operate in Beijing and Shanghai and its Hong Kong office, which specialises in advisory work for mid cap companies, has an alliance with a Shanghai based advisory firm.
Prot said BNP Paribas was not under pressure to grow via mergers or major acquisitions but that the bank was eyeing small stakes in certain emerging markets. Cross border M&A activity in Europe was still problematic, he said.
He said the bank’s strong first half performance across all core businesses demonstrated that its current strategy was proving to be powerful in creating value for shareholders.
Prot said investing in a major Chinese bank was too risky and that the bank preferred to start with a smaller bank and grow organically.
The bank has licenses to operate in Beijing and Shanghai and its Hong Kong office, which specialises in advisory work for mid cap companies, has an alliance with a Shanghai based advisory firm.
Prot said BNP Paribas was not under pressure to grow via mergers or major acquisitions but that the bank was eyeing small stakes in certain emerging markets. Cross border M&A activity in Europe was still problematic, he said.
He said the bank’s strong first half performance across all core businesses demonstrated that its current strategy was proving to be powerful in creating value for shareholders.
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