Does it not also have footing in Taiwan?
A curve ball to hold onto Taiwan's financial and banking system as well?
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BuaNews (Tshwane)
26 October 2007
Posted to the web 26 October 2007
Johannesburg
Standard Bank has announced a major partnership with the Industrial and Commercial Bank of China Limited (ICBC).
ICBC is the world's largest bank by market capitalisation and will become a 20 percent shareholder in Standard Bank Group according to the deal, according to a Standard Bank press statement.
This deal will result in a R36.7 billion ($5.5 billion) equity investment into Standard Bank, which is the largest foreign direct investment into the country and is a landmark transaction for Africa, South Africa and Standard Bank. Foreign ownership of Standard Bank, currently at around 25%, will increase to approximately 40 percent after the proposed transaction, leaving Standard Bank still majority South African-owned. The transaction is subject to the approval of the South African Registrar of Banks, the China Banking Regulatory Commission, the JSE, and Standard Bank and ICBC shareholders.
ICBC is the People's Republic of China's leading commercial bank with a market capitalisation of approximately USD319 billion as at the close of business on 22 October 2007. It is listed on the Hong Kong and Shanghai stock exchanges, has over 16 000 branches in China, nearly 100 branches elsewhere in the world and 2.5 million corporate and 180 million personal bank customers. ICBC was listed in the largest Initial Public Offering (IPO) in history in October 2006, raising $21.9 billion in new equity. The proposed $5.5 billion transaction would represent ICBC's largest investment outside of China.
ICBC Chairman Jiang Jianqing said: "From a strategic perspective, ICBC has been seeking opportunities to expand its international business, in particular in Africa given strong trade linkages and the close and long standing friendship between China and South Africa. "As many of our large clients seek investments in Africa, the demand for cross border financial services is accelerating. Standard Bank with its market leading position in South Africa and a true pan-African footprint, represents the best organization with which ICBC can partner." Jacko Maree, Standard Bank Group Chief Executive, said: "A partnership between Standard Bank and ICBC is attractive as each party brings numerous complementary benefits to the relationship. "Both banks can benefit through the creation of new revenue streams, access to the new partners' expertise and sharing distinctive local market knowledge and expertise. By partnering with Standard Bank, the largest bank in Africa, ICBC will be able to enhance its service to its domestic customers seeking to do business in Africa."
Trade and investment flows have developed between China, South Africa and other areas of Africa over the past few decades. Recently, both the relative size, area of focus, and bilateral nature of such trade have increased dramatically.
"ICBC shares Standard Bank's vision about the long-term investment proposition for Africa and, together with Standard Bank, hopes to lay the foundation for significant expansion of such trade and investment between its Chinese clients and the African continent," said Maree.
