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Scotland bank in US$3.1b deal for BOC stake
By Su Bei (China Daily)
Updated: 2005-08-19 05:47
The Royal Bank of Scotland (RBS), Europe's second largest and the world's sixth largest banking group by market capitalization, is to spend US$3.1 billion buying a 10 per cent stake in Bank of China (BOC).
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| BOC Hong Kong (Holdings) Ltd. Vice Chairman and Chief Executive He Guangbei (C) gestures during a news conference in Hong Kong August 18, 2005. [Reuters] |
BOC, which has signed a strategic investment and co-operation agreement with RBS, said yesterday in a press release that the deal still needs to be approved by relative government departments and regulators.
According to the strategic programme, the two banks will enter into broad co-operation in areas including credit cards, wealth management, corporate banking and personal lines of insurance.
In addition, they intend to establish a close co-operative relationship in major banking managerial areas, including corporate governance, risk management, financial management, human resources management and information technology.
RBS will appoint a representative to serve on the BOC board of directors.
George Mathewson, chairman of RBS, said the bank's board believes the size and growth of China represents an important opportunity.
"We have been developing our relationship with Bank of China over the last 18 months, and have been impressed by the strengths of the business and its compatibility with RBS," he said.
The combination of BOC's brand, distribution and customer base with RBS's product and operational strengths and experience will be powerful in the Chinese market, he said.
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