Taiwanese financial firm Fubon Financial has unveiled its plans to buy a considerable stake in China's First Sino Bank.
The company revealed it hopes to expand into the Chinese market by purchasing an 80 per cent stake in the financier at a cost of 6.45 billion yuan ($1.03 billion), Reuters reports.
It is hoped that the move will result in the strengthening of banking links across the Taiwan Straits, with trading ties between the region showing signs of improvement of late.
In a statement, Fubon Financial explained the acquisition can only go ahead with regulatory approvals from both sides, but added the deal "will help us build a complete platform in Greater China, paving the way to enter the fast-growing areas in China".
The stake is to be purchased by Fubon from Taiwan's Pou Chen Group, while the remaining 20 per cent will remain with Shanghai Pudong Development Bank after being diluted from 30 per cent.
By Tony Aynsley