ICBC first Chinese bank with controlling stake in US bank
(18 July 2012 – China) The world’s largest commercial bank, Industrial and Commercial Bank of China Ltd (ICBC) has completed its acquisition of Bank of East Asia Ltd. US (BEA US).
The US$140 million (A$136 million) deal was signed in January last year, but only approved by the US Federal Reserve in May.
The move by ICBC is the first purchase of a controlling ownership in a US bank by a Chinese bank.
The purchase makes ICBC the controlling 80 percent shareholder of BEA US. This purchase gives ICBC a commercial bank license in US and allows it to operate retail banking business and enlarge its service network in US.
ICBC had 244 overseas institutions in 34 countries and regions as of the end of the first quarter of this year. BEA has 13 branches in the United States, running retail banks, commercial banks and trade finance business.
ICBC is the largest bank in the world by profit and market capitalisation. It is one China's state-owned Big Four commercial banks. In 2011, it ranked number seven on Forbes Global 2000 list of world’s biggest public companies.
The move by ICBC is the first purchase of a controlling ownership in a US bank by a Chinese bank.
The purchase makes ICBC the controlling 80 percent shareholder of BEA US. This purchase gives ICBC a commercial bank license in US and allows it to operate retail banking business and enlarge its service network in US.
ICBC had 244 overseas institutions in 34 countries and regions as of the end of the first quarter of this year. BEA has 13 branches in the United States, running retail banks, commercial banks and trade finance business.
ICBC is the largest bank in the world by profit and market capitalisation. It is one China's state-owned Big Four commercial banks. In 2011, it ranked number seven on Forbes Global 2000 list of world’s biggest public companies.
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