Deutsche and Sal. Oppenheim jr. & Cie. KGaA, which is headquartered in Cologne, Germany, and is the largest independent private bank in Europe signed a binding agreement last October to buy a total of 587.2 million shares in Hua Xia Bank, amounting to a 13.98% for a total of Ç265 million.
For Deutsche BankÆs part, Deutsche Bank AG purchased 295,000,000 shares (7.02%) and Deutsche Bank Luxembourg S.A. bought 121,000,000 shares (2.88%) in Hua Xia Bank, which is listed on the Shanghai Stock Exchange. Deutsche Bank has also been granted one seat on Hua Xia BankÆs board.
Hua Xia Bank is ChinaÆs eleventh-biggest lender, with 266 branches in 27 cities. DeutscheÆs purchase puts the bank in the same company as other overseas financial institutions such as HSBC Holdings and Bank of America Corp, which combined have invested more than $16 billion in China.
ôFor us the strategic partnership with Hua Xia Bank is a meaningful and important step. We are already underway with detailed discussions on areas of commercial cooperation,ö says Rainer Neske, Deutsche BankÆs global head of private and business clients.
Indeed, Deutsche Bank and Hua Xia Bank have signed a wide ranging cooperation agreement which includes Deutsche Bank exclusively developing credit cards, as well as partnering in affluent customer business, the distribution of investment products, and cash management services.
Deutsche Bank says it will also provide technical support and assistance to Hua Xia Bank to further strengthen its existing franchise in risk management, retail and corporate banking.
ôThis acquisition enables Deutsche Bank to participate directly in the development of the rapidly expanding retail financial services sector in China,ö says Colin Grassie, Chief Executive Officer of Deutsche Bank Asia Pacific.
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