ICBC, the world's biggest bank by market value, will take 80 percent of commercial lender Standard Bank Argentina and its two affiliates, asset manager Standard Investments and commercial service provider Inversora Diagnol.
Standard Bank will have its stake in all three firms reduced to 20 percent. Reuters reported on the takeover approval on Saturday, citing an official source who declined to be named.
This makes ICBC the first Chinese lender to enter Latin America's third-largest economy, where President Cristina Fernandex ordered banks in July to lend nearly 15 billion pesos ($3.1 billion) by year-end to finance investment in production.
On November 27, 2012 (Peru time), ICBC celebrated the opening of ICBC (Peru) Company Limited ("ICBC Peru") Branch in an inauguration ceremony held in Lima, the capital of the Republic of Peru, signaling the establishment of the first Chinese commercial bank in Peru. ICBC Peru is the first wholly-owned branch of ICBC opened in South America, which further completes ICBC's global presence and improves its ability to serve customers around the world. Among the guests at the inauguration ceremony were ICBC Chairman Jiang Jianqing, the Central Reserve Bank of Peru Governor Julio Velardo Flores and Chinese Ambassador to Peru Huang Minhui.
Speaking at the inauguration ceremony, ICBC Chairman Jiang Jianqing said Peru has witnessed robust economic growth over the past few years. With a GDP growth of 6.92% in 2011, Peru is now one of the fastest-growing economies in Latin America. Since China and Peru established diplomatic relationship more than 40 years ago, bilateral trade between the two countries has gained momentum with closer exchanges in different areas, thus raising higher requirements for the banks of Peru and China working together. The ICBC Peru will act as a bridge for trade and investment, as well as a new platform for financial exchanges and cooperation between China and Peru, offering a full spectrum of excellent financial services to corporate clients and personal customers from the two countries.
ICBC continues Middle East expansion
To open branches in Saudi Arabia and Kuwait, and invest in South Africa.
International and Commercial Bank of China, the country’s largest lender, said it has received approval to do business in in Saudi Arabia and Kuwait. It also said it has gotten local regulatory approval to buy a controlling stake in the Argentine unit of South Africa's Standard Bank, its longtime partner in Africa and Africa’s largest bank.
Opening branches in Saudi Arabia and Kuwait will allow ICBC to expand into those markets by offering renminbi settlement services for the huge amounts of oil that China buys from the region each year.
Most oil purchases are currently in US dollars, but both Saudi Arabia and Kuwait would almost certainly welcome some purchases using the renminbi to diversify their foreign currency holdings as the dollar steadily depreciates.
Buying banks is “no rose garden. We consider it a battleground”. So says Jiang Jianqing, president of China’s ICBC, the world’s biggest bank (by market capitalisation, deposits and credits).
Originally posted by Tardacus
The U.S. is too busy trying to keep their own ship from sinking that they don`t have the resources to be expanding into new markets.we are witnessing history in the making, the downfall of a once great society.
Latin America has some of the world’s major energy and commodities supplies, so it’s no surprise that it is a very attractive place for resource-hungry China to do deals. And so it has racked up a staggering 286 per cent rise in investments in Latin America in from June 2010 to May 2011 compared with the previous 12 months.
Originally posted by SLAYER69
Sooner or later the two biggest kids on the block will end up fighting to see who is the baddest.
It's called human history.
Check it out