ICBC to buy 80% stake in Bank of East Asia, US $140 million

ICBC, 23rd, announced jointly with Bank of East Asia Limited (BEA) that the two sides had reached an agreement on the U.S. Bank of East Asia's equity deal, which would pay about $140 million to the Bank of East Asia for a 80% stake in the Bank of East Asia. The two sides signed a deal on the sale of shares in Chicago 21st in Central America. The Bank of East Asia holds the remaining 20% per cent. At the same time, the Bank of East Asia also has the option to sell the remaining shares to ICBC on the terms and dates agreed upon by the parties after the completion of this transaction. The two sides will then perform supervision and approval procedures.　　After the transaction is completed, ICBC will be responsible for the operation and management of the Bank of East Asia. ICBC Chairman Jiang Jianqing said the acquisition is the first takeover of U.S. commercial banks by Chinese banks, strategic significance. The acquisition of a 80% per cent stake in the Bank of East Asia will enable ICBC to obtain a US commercial bank licence to fill the gap between ICBC's retail banking licence in the US and further expand its institutional and business network in the United States to enhance its operational strength in the US.　　The successful completion of the transaction will not only lay an important foundation for Chinese banks to upgrade their financial services in the United States, but also become an important symbol for the further improvement of the level, breadth and depth of financial equivalence between the two countries. ICBC said that the final completion of the above transactions, respectively, the China Banking Regulatory Commission, the Hong Kong Monetary Authority and the United States Federal Reserve Board approval.