Scotiabank to Buy 20% Stake in Bank of Guangzhou

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Scotiabank, the Canadian financial firm, announced on Friday that it would buy a 20 percent stake in China’s Bank of Guangzhou for roughly $723 million.

It is the latest deal for a financial firm in the fast-growing region.

As the Chinese economy continues to flourish and the country’s middle class continues to expand, international banks are angling to capitalize on the opportunities. Citigroup owns a piece of Guangdong Development Bank. Bank of America still has a stake in China Construction Bank, even after selling some shares for $8.3 billion.

With its acquisition, Scotiabank will expand its presence in China, where it has been doing business since the early 1980s. The Canadian bank already owns a 14.8 percent stake in Bank of Xi’an, which it is looking to increase. The Bank of Guangzhou, the 29th-largest bank on mainland China, is privately held, mainly by the government.

“The Bank of Guangzhou is a strong, prosperous and well-managed financial institution. With this investment we can build on Scotiabank’s international presence and experience in China and combine our core strengths in wealth management, personal and commercial operations with our new partners,” Rick Waugh, chief executive of Scotiabank said in a statement. “Asia is a region of strategic importance for Scotiabank and enhancing our investment in China supports our long-term growth strategy.”

The deal is expected to close later this year.

福多多

从没听说过这个银行。。。