The Industrial and Commercial Bank of China (ICBC), the world's largest lender by market value, Thursday announced it would buy a 70-percent stake in a Canadian subsidiary of the Bank of East Asia (BEA) for 80.25 million Canadian dollars (73 million U.S. dollars).

In return, BEA would buy out ICBC's 75-percent stake in ICEA Finance Holdings Ltd. for 372 million Hong Kong dollars (48 million U.S. dollars), ICBC said in a notice on its website.

ICEA, a joint venture of ICBC and BEA, would become a wholly-owned subsidiary of BEA after the transaction. ICEA's main businesses included provision of securities brokerage, underwriting and futures contracts dealing. By the end of 2008, its net assets totaled 451 million Hong Kong dollars.

"The two transactions will create a mutually-beneficial situation for both parties," said ICBC chairman Jiang Jianqing. "The acquisition of a 70-percent interest in BEA Canada will enable ICBC to establish its banking business and customer base in Canada, which will provide a strong platform to further expand our businesses and network across North America."

"We are confident that the two transactions will further strengthen our financial services and enhance the diversity of our offering in Hong Kong," said David K.P. Li, chairman and chief executive of BEA.

However, the transactions still needed regulatory approvals from the Chinese mainland, Hong Kong and Canada.

Source: Xinhua