Both parties are now seeking the necessary regulatory approval in the US and the People’s Republic of China (including Hong Kong).
Upon completion of the transaction, BEA will have the put option to sell its remaining shares to ICBC in accordance with the terms and timeline specified in the agreement.
Once the transaction has been completed, ICBC will be responsible for the operation and management of BEA USA.
ICBC chairman Jiang Jianqing said their acquisition of an 80% interest in BEA USA will enable them to establish a solid presence in the US. With this commercial bank license in the US, ICBC can further expand its retail banking business and operating network across the nation, and ultimately enhance its market position.
"The successful completion of this transaction will not only establish a good foundation for the provision of holistic financial services by a mainland bank in the US, but also will mark a new era of open-market co-operation between China and the US, and have a positive impact on Sino-US trade relations," Jiang concluded.
