ICBC to take over Standard's Argentina assets

5 August 2011

Industrial and Commercial Bank of China (ICBC) is to take over assets controlled by Standard Bank Group in Argentina.

The most profitable lender in the world, which has more than 200 million customers and over 3 million corporate clients, has agreed to pay $600 million for the stakes - a move that marks its biggest such purchase in the last three years.

An 80 per cent stake in Standard Bank Argentina, Inversora Diagonal and Standard Investments is to be paid in cash by the Chinese institute, while it is also considering a joint $100 million investment in Standard Bank Argentina once the takeover is finalised.

Speaking to Bloomberg, head of Hong Kong and China banking research at Daiwa Capital Markets Hong Kong Grace Wu said: "ICBC's expansion overseas is in line with the broader trend of Chinese companies tapping into the international market. ICBC may have more acquisitions in Latin America and Asia."

By Tony Aynsley

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