CCB Plans to Spend USD 15 Bn Buying European Counterpart

Source: Netease Finance, ChinaScope Financial (Data)

+       Media reported that China Construction Bank (0939: HKG; 601939: SHA), the second largest bank in China, is planning to spend as much as USD 15 billion acquiring a bank in Europe. If this materializes, it will become the largest acquisition of a foreign bank in China.

+       WANG Hongzhang, Chairman of CCB, said that with CNY 100 billion (USD 15.8 billion) in funds, the bank expects to buy a bank’s entire equity, or at least 30 percent to 50 percent of one of Europe’s large banks. WANG didn’t specify which banks the lender was considering to purchase, but he said that banks in the UK, Germany, and France are the most attractive.

Unaffected by the huge losses made by other Chinese banks going global, China Construction Bank (601939.SHA) is continuing its internationalization strategy. So far the bank has acquired AIG finance and BOA Asia in Hong Kong, and bank fundamentals remain solid.

If you'd like to receive a daily e-mail update of ChinaScope Daily Dim Sum Newsletter, please contact us:newsletter@chinascopefinancial.com. If you'd like to try out ChinaScope Database, apply for a trial here