Under the terms of the transaction, BofA will sell nearly 2 billion shares, or 1% of all CCB outstanding shares, while the strategic assistance agreement (SAA) between BofA and CCB will continue up to 2016.
Concentrating on processes and systems including customer service and sales models, the US lender offers advice and assistance to CCB, as per the SAA.
Since 2005, almost 3,100 Bank of America employees and approximately 5,000 CCB staff have involved in SAA exchanges, subsequently BofA benefited through increased brand recognition in China.
Bank of America CEO Brian Moynihan said that their relationship continues to bring substantial benefits to each company.
"We have built a strategic partnership based on shared operational expertise, and our clients in China and Asia recognize Bank of America’s ongoing association with one of the world’s leading financial institutions," Moynihan added.
It is believed that the transaction will generate a pretax gain of nearly $750m during the third quarter of 2013.
In August 2011, BofA sold certain portion of its stake in CCB in a private transaction with a group of investors including Singapore’s Temasek Holdings, and raised $14.9bn.
BofA services nearly 51 million consumer and small business relationships, with almost 5,300 retail banking offices and about 16,350 ATMs, and online banking with 30 million active users and over 13 million mobile users.
