China Construction Bank (CCB), one of China's major state-owned
commercial banks, approved a plan on Friday to acquire the Hong
Kong-based subsidiary of the Bank of America.
The CCB will buy Bank of America (Asia) Ltd. for HK$9.71 billion
(US$1.25 billion), according to a deal signed by the two sides in
late August. The sum is 1.32 times the net ledger assets of the
Bank of America (Asia) recorded at the end of last year.
The deal was approved at the CCB's first provisional annual
shareholders' meeting on Friday.
After the acquisition, the CCB will double its business in Hong
Kong and became the ninth largest local lender, up from its current
16th place.
Guo Shuqing, chairman of the CCB board, said the purchase will
be a milestone for the bank's overseas development in a bid to
build itself into a leading international commercial bank.
With 14 branches in Hong Kong and three in Macao, the Bank of
America (Asia) has total assets of HK$49.07 billion (US$6.30
billion) and net assets of HK$7.38 billion (US$947.9 million), with
individual banking revenues accounting for 65 percent of its whole
income.
(Xinhua News Agency October 22, 2006)