ANZ enters Shanghai partnership
ANZ has strengthened its operational presence in China with the signing of an agreement to purchase 19 per cent of the Shanghai Rural Commercial Bank (SRCB).
The consideration for the equity stake in China’s largest rural commercial bank will be US$252 million or $328 million.
The new relationship will see ANZ provide technical support to SRCB mainly in the areas of risk management, retail banking, small business banking, financial markets, international trade, human resources, and information technology.
ANZ chief executive John McFarlane said: “This strategic partnership provides the opportunity to play a role in one of the fastest growing banking markets in the world.”
“It combines ANZ’s expertise in risk management and retail and small business banking with SRCB’s franchise and knowledge in Shanghai’s retail and small to medium enterprise market,” he added.
Chairman of the SRCB Li Xiu Lun said the timing of the equity share purchase would allow both parties to take advantage of the opportunities in the Chinese financial services market that have come about through reform and liberalisation.
“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,” Li said.
The deal is still subject to approval by the Shanghai Government and the China Banking Regulatory Commission and is expected to be finalised in the first half of 2007.
ANZ’s presence in China has spanned 20 years with an initial foray into the market in 1986 when the bank opened a representative office in Beijing. It consolidated its operations in China by opening a Shanghai branch in 1993, upgrading its Beijing representative office to a branch in 1997 and opening another representative office in Guangzhou earlier this year.
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