South Africas Standard Bank may sell 60 per cent of its UK commodities and foreign exchange trading businesses to the Industrial & Commercial Bank of China (ICBC) for at least US$600mn
According to a Wall Street Journal report, in a couple of years, the ICBC will also have the right to increase its stake in Standard Bank to 80 per cent.
China’s biggest bank by assets, ICBC, already has a 20 per cent shareholding in Standard Bank, which is Africa’s most valuable lender.
Standard Bank has refused to comment on the matter, although it confirmed that it would continue co-operating with the Chinese bank.
It said in a statement, “Following the acquisition of a 20 per cent stake in the Standard Bank by ICBC announced in October 2007, a formal co-operation agreement was signed, and which is underpinned by several workstreams, including Resource Banking.
“As part of this agreement, Standard Bank continues to deepen all areas of co-operation as originally envisaged.”
