China Ping An bank series of progressive merger and acquisition path flat deep love is not 30 days flash

The deep development of acquisitions is an important milestone in the construction of the bank's dream for many years.　　In the three pillars of Ping an financial group--insurance, banking and asset management, the construction of banking system is a long way. In the 90 's Division business policy, MA will be the Peace Trust default for the group's best bank acquisition of the interface. However, there was no suitable bank to buy at that time.　　It was not until 2003 that Ping an was able to buy a small, Fujian Asian Bank in the name of Ping An trust. Ma's "Troika" (insurance, banking, investment) concept was once again ignited by the 2005 wide-issue bid. The horse claimed that Ping An group should not only have big insurance wheels, but also big wheels for banks, two big wheels to keep abreast of, and peace must complete the wheel revolution.　　The following year, in the multi-party game, the wide distribution of watermelon lost, safely picked up the deep firm's sesame. Ping An group general manager Zhang Zixin to this newspaper reporter said: "Through 3 years of reform, proved that peace can manage a bank, this is not an insurance company in the management of banks, but professional bankers in the management of banks." Cross-selling between banks and insurance also created the miracle of millions of card-issuing cards in the first year. "However, Ping an bank, after all, is only a commercial bank on the basis of the regional banks, the desire to be large, can only be bought again."　　June 2009, China Peace reached a new relationship with deep development. 1 "Flat deep love is not 30 days Flash" June 12, in deep development (000001. SZ) and China Ping ' an (02318.hk,601318.sh) after a week of suspension, China Ping An issued a "Share subscription Agreement" and "shares purchase Agreement" announcement.　　And before, in the face of China's peace, China Life, the bank and other potential bidders speculation, deep development and the relevant parties have always been secretive. Another week later (June 19), the chief financial officer of Ping An, the president of Ping An bank, said in an exclusive interview with this reporter: "We are from the beginning of the May and deep development of the detailed negotiations." No third party was involved in the bidding. Although the talks were quick and smooth, the deep love was not a 30-day flash (from the beginning of May to the beginning of June), and the substantive contacts between the two sides began from the beginning of the year. "Richard is one of the three leaders who presided over the acquisition. The other two were Liu Shan, managing director of Ping An, general manager of Zhang Zixin and director general of China Ping An asset management (Hong Kong) company.　　Hu, managing director of Goldman Sachs Group, is also among the powerful intermediary teams hired by Ping An. "Deep development is the last National bank to have a chance to invest in peace." "The Ping an senior team is obviously very clear about this. So the negotiations are progressing very quickly. First with the U.S. new bridge investment talks, and then with the deep development of the executive talk. By the beginning of the June, the negotiations entered into concrete technical aspects and the intermediaries began to intervene.　　June 12, in order to avoid the acquisition of news leaks affect share prices, deep development and peace both suspended. The key point of the negotiations is naturally the price. For peace this time the equivalent of twice times net assets of the priceZhang Zixin said: "According to historical experience, for banks, 2 to 2.2 PB (city net rate) is reasonable." As you know, the market performance of banking stocks is still depressed. The purchase price was reached, and the others spoke quickly. "In fact, the love of peace and deep development and even investment in the US new bridge is not the beginning of this year," he said. As early as 2006, peace and deep development has been more in-depth contact. At that time, it was the key period of the strategic layout of the big bank and also the confused period of the new bridge.　　The negotiations were shelved after a five-year lock-up period that was promised by the US new bridge investment to the Shenzhen government (to be lifted by 2010), while Ping An was in the business of bidding for a 85% stake. However, some people familiar with the banking industry said that the 2006 negotiations to the new bridge and the deep development of a preliminary understanding, but also to the new bridge on the peace of the big bank strategy and the bottom line have been understood, the two sides have established a certain tacit understanding. After all, the new bridge also wants to find a good buyer, just as the early sale of the Korean bank to Citibank.　　This may be one of the reasons the new bridge chooses to take over safely. "We can do a reverse push. Since peace has long wanted to be a bank, why not before the new bridge entered, that is, the beginning of the century, the deep development of high-rise everywhere looking for buyers to buy it? "This is actually a matter of trust," said a senior executive, who was not named, explaining to our correspondent. Peace wants to be a big national Bank Yes, but first shareholders will say wait, do you know how to run a bank? Regulators would say the same thing, even the whole society would have such questions.　　"He said, since there is doubt, then make a point of view, 2006 bought a deep firm in this city, the peace began the bank test." Why is it so obsessed with the banks of China, 7 or 8 years ago, who didn't dare to start a quick romance to make insurance?　　Things to go back nearly 20 years ago, to see the peace of the banking system construction process. 2 Fuzzy "mixed" guess in the early 90, due to the general relatively backward settlement methods, customers seek insurance compensation generally to the Ping an headquarters to collect.　　At that time, the peace headquarters in Shenzhen Gossip Ridge, the surrounding often outlaws Rob clients of the case of funds. "At that time, there was the idea, including at the top of Ping an, that if they had a bank, their money would be more secure and the service would be upgraded accordingly." At that time, the main leaders of peace did not have the concept of mixed operation and comprehensive operation, but only vaguely sensed from the business operation that a broader range of professional financial services would benefit both customers and companies.　　Said an executive at Ping an, China.　　With the expansion of business scale, market and customer demand, including trust, securities, banks and other integrated management framework began to put on the agenda of Ping An board, MA and other ping ' an high-level attempt to gradually move towards a comprehensive financial model. 1992, the first security in the body appeared in the securities department had a big improvement, the profit was 21 times times higher than the previous year, and then independent in the end of Ping an securitiesCompany。 "Just when we wanted to be a bank, we had a policy change," said Gao. Around 1993, the domestic financial disorder, the financial market out of control situation, under the overheated macroeconomic stimulation, illegal fund-raising, unauthorized lending, strong financial supervision and control measures were immediately introduced.　　"He refers to the State Council's decision on financial system reform issued in December 1993, which explicitly defined financial institutions as" separate operations and separate management ", including banks and insurance companies. 1995 years later, peace according to the policy requirements of the transformation of the business model, however, peace to the integrated management of the heart has not changed. After a thoughtful, MA to the regulatory authorities to submit the group holding mode of the separation scheme, will be ping ' an insurance group, wholly-owned or holding all kinds of insurance, investment subsidiaries, the formation of the group under the control of the split business model.　　One of the key is to be allowed to hold a peace trust under the law. Ping An trust in 1994 after the acquisition of the Pearl River Delta Trust renamed.　　In the view of Ping An group, the establishment of Ping an trust not only the necessary business platform for the comprehensive finance itself, but also the bigger function is that it is a super epitaxy platform--------------------------------------------- Not only that, it is with the Ping An trust, ping an securities immediately under the name of Ping an trust to survive. After that, Ping an trust and set up an easy loan to become a microfinance company's embryonic form.　　[Page] 3 of the ongoing mergers and acquisitions ready to have the Ping an Trust interface, why peace has been slow to take the first step to buy banks?　　"Mainly is not the time," said the senior executives, on the one hand, after several years of development, Ping An, although the insurance premiums and asset size of the national trade three, but not enough capital to merge the larger banks. In 1997, Ping An premium income was only around 18 billion. On the other hand, peace in China, which has never dabbled in banks, lacks understanding and mastery of the banks and has not accumulated enough talent, management and business support.　　such as hasty entry, the merger effect may not be ideal. The bigger reason is the objective environment, the Bank's own management and the impact of the Asian financial crisis, which makes the bank's bad debts increase, the burden is heavy, and many banks ' risk control ability is weak.　　But peace is still in preparation, which is to accept HSBC shares. In 2002, HSBC, the international bank giant, invested 600 million dollars in a 10% stake in Ping An, becoming the second-largest shareholder and increasing its holdings as the largest shareholder in two years.　　HSBC's position and ability in the banking sector has played a strong role in the development of safe banking. Shanghai Zhangjiang Operations and Management Center, a back-up center built with the help of HSBC, is said to be the largest and most advanced of its kind in Asia and is MA as a "Backup kitchen". From the outset, it has laid a large platform for the integrated operation of China's Ping An future for decades, providing data back-up for all subsidiaries, including banking departmentsOperational support. The construction of the banking system is already within reach when the peace of the dormant years has re-emerged.　　According to Sun Jianyi, Vice chairman and deputy chief executive of Ping An group, in 2003, the ping ' an big bank strategy was officially launched, almost in peace with HSBC. In charge of the implementation of the Ping An bank strategy, Richard, who joined Ping an in October 2005, was appointed as chief financial Officer of the Group by Ma and the president of the later Ping an bank. Richard had worked at Citibank for nearly 20 years.　　When Richard joined, the Ping an bid was widely released, and he was later involved in the acquisition of deep business and deep development.　　Richard believes that China's Ping an group's strategic core, or the focus, is the growing and potentially huge retail financial business. The list is now one of growing private wealth, and the second is that Chinese customers are eager to add value to their wealth in new ways. Whether to seize this golden opportunity in the last ten years will be of vital importance to the development of peace in China.　　This is why China's peaceful efforts to build a comprehensive financial platform including the banking system. Clearly, in a comprehensive financial platform encompassing the three main modules of banking, insurance and asset management, almost all of the customer's financial services needs can be met. In the words of Ma is "a customer, an account, a number of products, one-stop service", which "one account" is a bank account.　　Clearly, in the future of the comprehensive financial map of the peace, banks become a core part of a sense. 4 progressive path of mergers and acquisitions at the discretion of China, Ping An has identified three core elements of the banking system-banking licences, bank infrastructure and physical outlets. The experiment begins with a single, humble merger, a bank licence.　　This is 2003 years of peace and HSBC to join forces to acquire Fujian Asia Bank (hereinafter called Foya Bank). Fencing the bank merger is the Ping An Group strategic development department. Then the head of the department, now Ping ' an group of directors of the director of the Jinshao? Oh, the neck? Reporters said that before the acquisition of Foya Bank, Peace has been operating for a long time, but has been unable to find a "clean assets" of the bank.　　The Foya bank in Fujian province, the establishment of the 10 since the operation is not active, registered capital of less than 50 million U.S. dollars, only 70 employees. To reduce the risk, the central bank asked banks to increase capital, the end of 2003 is the deadline. Foya original two major shareholders have no intention to increase capital, and plan to exit the operation.　　More importantly, Foya's shareholder structure is simple, bad assets, management norms, although small, but in that foreign media that the Chinese banking industry "technical bankruptcy" period, Foya Bank is particularly valuable.　　Thus, Ping an united HSBC, respectively, the joint purchase of 20 million U.S. dollars Foya Bank, and immediately increase the capital of 23 million U.S. dollars, and finally get a 73% equity ratio. Considering the long-term development of the division operation and the group holding mode, from the acquisition of Foya Bank, China Ping An began to pay close attention to the subject of acquisition to avoid policy restrictions. The acquisition is the peaceTrust in the name of the completion, thus avoiding the "insurance law" 105th on the acquisition of commercial banks of the capital of the restrictions.　　In a meaningful sense, the acquisition of Foya Bank just in time to catch up with Ping an listing, so that it into the listed assets, to achieve the overall listing. The first successful mergers and acquisitions of banks, China safe feeling good.　　After renaming it as Ping An bank, he moved to Shanghai and Chen Kunde the professional manager of Taiwan's famous bank. But Ping soon found that, although a bank licence, but a Sino-foreign joint venture, including credit cards, many businesses are still subject to strict restrictions.　　At the same time, Foya Bank is too small to be able to meet the requirements of the two acquisition elements of the bank infrastructure and network resources. What is more special is that the banking structure and network resources required by Ping An must be able to match the insurance business.　　In 2005, China's Ping an assets of more than 300 billion, premium income 59 billion, business has been spread across the country's thousands of cities, it is clear that not a national bank can not satisfy China's peace of appetite. It happens that in 27 cities have 500 outlets of the wide distribution at this time issued a strategic investor invitation to invite tenders, so that the immediate bright.　　The widely-issued nationwide banking licence, especially its 13 million customers and more than 2 million wide-card issuers, coincides with the idea of a strategic takeover of the big banks. China Ping An in a later report said that the acquisition will bring core banking business, into the top ten, insurance business, access to sales channels, asset management, will be a new platform for funds and institutional products. It can be seen that peace for the broad issue of the winning. By the end of 2005, three major competition consortia had reported final bids, that is, Citi bid 24.1 billion, France-hing bid 23.5 billion, ping an bid 22.6 billion.　　In addition to price factors, coupled with other comprehensive factors, so that the outcome of a difficult moment. Another background is that the 2006 deadline for a fully open renminbi business is near, and regulators are asking banks to immediately restructure their internal reforms to bring in strategic investors to boost capital adequacy ratios.　　With regulatory deadlines looming, almost all the big and small banks are looking for strategic investors. Jinshao? The merger, China Ping An has a special list of almost all the banks in the country, in addition to the four major banks, including the Bank of communications have been included in the security of potential shares. "5 of mergers and acquisitions to the interface in the sense of a bid for the broad issue of the odds, China's peaceful eyes began to look for prey again."　　At the beginning of 2006, Shenzhen Commercial Bank of the city was reorganized, and China's peace was invited by the Shenzhen government. As the first domestic city commercial bank, deep firms have renminbi and credit card licences. The drawback is that the deep firm is a regional bank, with only 47 outlets.　　Even so, the reorganization of the deep firm has attracted a number of domestic and foreign rivals such as Standard Chartered, East Asia and Bank of communications, which is nothing more than a bank licence. For China's peace, the inspiration for the offer is that the eggsIn one basket. At that time, although the domestic bank reorganization in full bloom, but the opportunity is fleeting. According to Richard, "mergers cannot be foreseen beforehand, and you never know what opportunities are available in a year or two or five years." "In addition, peace has its own calculations, it is possible to have been sitting in Shanghai and Fujian outlets of the Ping ' an bank and the deep firm to get through to achieve cross-regional operations, and gradually expand the network, walking curve strategy. [Page] Seek and move.　　In the bid for the deep firm, China Ping An showed a strong competitiveness, only half a year, won a deep firm, is the year July 28, the broad issue of the bid has not yet been unveiled, China Ping An has announced in Shenzhen to buy 4.9 billion deep firm 89.24% of the shares. Extended to the beginning of 2007, under the auspices of China's Ping An, Shenzhen and Xiaoping Bank a series of absorption merger plan completed, and then set up a new ping an bank.　　At this point, China's peace to create a single bank brand a substantial step forward, the big bank strategy has been further enhanced. Sun Jianyi, vice chairman of Ping An, said at the time that the three pillars of Ping an financial group were: insurance, banking and asset management. Clearly, the size of the banking business alone is not enough to be one of the three pillars.　　This means that the big peace Bank strategy is far from being halted, and the deep development of acquisitions is an important milestone in making real bank pillars. A major change in the two mergers is that the Foya bank's acquisition was done in the name of the Ping An trust, but China Ping An group came forward when the bid was widely issued. A person familiar with the matter said that when Ping an was bidding for a broad issue in the group's name, the CBRC did not disagree, stating that the regulatory gap had been loosened.　　You know, the banking institutions were soon eligible for insurance licences. Another change is the question of funding. It is clear that the 22.6 billion yuan offered by Ping An for a bid for a broad offering cannot all come from its own funds. 2002 before HSBC shares, Ping An net worth of about 5 billion yuan, the HSBC shares to increase to about 10 billion yuan, the 2004 listing of more than 10 billion yuan, plus two years of benefits of billions of yuan, to the end of 2005, Ping ' an own capital is more than 20 billion yuan.　　Mergers and acquisitions have almost run out of funds for the group, making follow-up difficult, obviously unlikely. Therefore, it can be calculated that, from the bid for the broad issue of bids, Ping an should have its own funds and long-term life insurance funds in combination with the idea of mergers and acquisitions.　　In the agreement on peace and deep development, a comprehensive plan for the simultaneous use of its own funds and premium funds for mergers and acquisitions was proposed.　　The almost-dusty incident reflects the fact that no matter whether China's Ping an group participates in bank mergers or long-term equity investments in banks using the long-term life insurance funds of its ping An life fund, it has been allowed by the regulatory level in the former wide-issue mergers and acquisitions. 6 Synergy effect at the beginning of 2007, the integration of deep firms and the Shanghai Ping ' An Bank of the new Ping ' an bank was established, Shenzhen banking regulatory director Liu Yuan had expected that the internal integration of Ping An bank takes three years toIt is in keeping with the plans of China's Ping An management that the dust settles. Richard believes that, from the peace of Foya Bank, deep firm for several years of mergers and acquisitions, overall still very successful. "Our confidence lies in the fact that we can operate well in Ping an bank, and we can also operate well in deep development."　　"he said. In the view of Ping An, comprehensive finance has an absolute advantage over product, customer, cost, talent, technology, risk and so on. "The phased outcome of the Ping An Bank reform experiment was the establishment of its own bank executive team, a unique cross-selling advantage, a strong backup platform and a large customer base," Richard said. "Recalling the beginning of the establishment of Ping An bank, Richard with more than 20 Chinese and foreign senior executives airborne the pomp is still vivid in the past, including the executive vice President Albert Chan, Fengjie was the former deputy governor of China Merchants Bank and Citic Bank Shanghai branch president, and the entire company's banking vice president Ye Huanchun for the Chinese bank　　In addition, Lei Zhiwei, Fang, Zhang Yaolin are well-known senior executives in the banking industry.　　In accordance with the peace plan, Shanghai Zhangjiang Operations Center will gradually complete the middle and the front, the fastest at the end of this year, Ping ' an customers in any one channel can get all the services of safe products, and from the product-oriented gradually to customer-centric.　　In addition, under China Ping An unified brand, insurance, trust, asset management, such as a full range of financial sequence so that Ping an bank immediately get cross-selling convenience, and this is precisely Ma has been assiduously pursued the comprehensive financial synergy effect. In all products, credit card is the most convenient carrier for the safe cross sale. Therefore, the safety card in the functional design, will carry the group of insurance companies to provide family property theft emergency, aviation accident insurance.　　However, the integration of bank and insurance resources in the credit card is only the first step of cross-selling, the Ping An plan will also join the securities, trust, asset management and other business resources. More than two years, relying on Ping An insurance of 50 million customers and sales force throughout the country, Ping an bank quickly resolved the credit card development of the initial customer source problem. 2008 of Ping An bank's new credit card 50.5% comes from cross sales within Ping an group.　　At present, Ping an credit card issued more than 2 million, in Shenzhen, Shanghai, the market share has entered the list of three. As to how to develop the surgical knife for the deep development, there is no clear idea of peace. However, Richard said that owning a deep development and owning ping An bank is different, the former is a national bank, the latter is regional, the National bank means that the customer market positioning is completely different. "It is premature to talk about how to transform the deep development, the key is to complete the agreement smoothly." "Jinshao malaria xing do #ū neck?" reporter Jia Yubao contributed to this article)