Australian and New Zealand bank has agreed to pay $252 million for a 19.9% stake in Shanghai Rural Commercial Bank, joining other rivals such as HSBC Holdings and Citigroup in buying stakes in Chinese banks before the country opens its financial services industry under World Trade Organization rules in December.
Under the terms of the strategic partnership, Australian and New Zealand bank (ANZ) will provide Shanghai Rural Commercial Bank (SRCB) with technical assistance, specializing in risk management, retail banking, small business banking, financial markets, international trade, human resources, finance, operations and information technology.
A $5 million technical support fund will also be provided by the Australian bank to assist SCRB over the next three years through a specific program.
SRCB will, by introducing ANZ as a strategic partner, leverage the expertise of a leading international financial institution in a wide range of relevant areas to support SRCB to become a leading retail bank in Shanghai, commented Li Xiu Lun, chairman of SRCB.
The acquisition is subject to the approval from the regulators and is expected to close by the end of the first half of 2007.