ICBC to spend $600 mn for stakes in Standard Bank Argentina, affiliates

Industrial and Commercial Bank of China (ICBC) today said that it will pay about $600 million to acquire stakes in South Africa-based Standard Bank Group's Argentinian units, as part of the Chinese lender's global expansion plan.

Under the deal, ICBC, the world's biggest bank by market value, will acquire an 80-per cent stake in Standard Bank Argentina and its affiliates, Standard Investments S A, Sociedad Gerente de Fondos Comunes de Inversión, and Inversora Diagonal Sociedad Anónima,

The deal would see the local Werthein and Sielecki families sell their 25-per cent stake in Standard Bank Argentina to ICBC, while Standard Bank will retain a 20-per cent stake.

ICBC and Standard Bank London Holdings, Africa's biggest lender, also plan to jointly invest $100 million in Standard Bank Argentina after the transaction.

Beijing-based ICBC had acquired a 20-per cent stake in Standard Bank in 2008 for $4.75 billion and the two lenders have since signed a series of joint ventures.

The acquisition will give ICBC 103 branches in Argentina with deposits of 10.7 billion pesos ($2.58 billion) at the end of March.