anz wins stake in china bank

Australia's ANZ Banking Group says it has won final government approval to buy a 20 per cent stake in China's Tianjin City Commercial Bank for $160 million.

"The deal received final government approval last week," Yvonne Foo, a senior bank officer based in Shanghai said.

ANZ, Australia's third largest lender, will provide expertise and a $6.6 million development fund to the bank, based in the north-eastern municipality of Tianjin, a statement from the bank says.

Under the terms of the deal, the Australian lender gets an immediate seat on the Chinese bank's board and a second in three years.

Tianjin, China's fourth-largest city commercial bank, has assets totalling about $10.7 billion and has a network of 180 branches, sub-branches and savings offices serving over five million customer accounts.

ANZ's stake comes in right on the Chinese regulator's limit of 20 per cent for equity holdings by individual foreign investors in a domestic bank.

The original agreement was announced in December.

ANZ is also negotiating with Shanghai Country Commercial Bank, after signing a co-operation alliance with the lender in 2003.

http://www.abc.net.au/news/newsitems/200606/s1654269.htm