ICBC's US ambitions

Given the timing of Industrial and Commercial Bank of China's offer to buy 80% of Bank of East Asia's US unit for $140 million, it should win regulatory approval.

In a perfectly politically timed manoeuvre, just after the conclusion of President Hu Jintao’s four-day visit to the US with President Barack Obama, the Industrial and Commercial Bank of China announced that it has agreed to the first Chinese takeover of a US retail bank.

ICBC has agreed to buy 80% of Bank of East Asia’s US unit for $140 million, pending regulatory approval in both countries.

Nice timing, that. Surely Beijing-based ICBC, the world’s biggest lender by market value, didn’t make the decision without consultation with political advisers who must have virtually assured approval in China and with advisers who suggested it would likely fly in America.

From a purely...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222