China's ICBC to buy 70 pct of BEA's Canadian arm

The Industrial and Commercial Bank of China (ICBC), the country's largest lender by total assets, has announced a deal to acquire 70 percent of Bank of East Asia's Canadian unit for 73 million dollars.

Bank of East Asia (BEA) will have the option to sell the remaining 30 percent stake to ICBC one year after the transaction is completed, the Chinese bank said in a statement posted on its website Wednesday.

Separately, BEA will buy from ICBC 75 percent of ICEA, a joint venture between the two banks, for 48 million dollars, therefore making it a wholly owned subsidiary of the Hong Kong lender, according to the statement.

"The acquisition of 70-percent interest in BEA Canada will enable ICBC to establish its banking business and customer base in Canada, which will provide a strong platform to further expand our businesses and network across North America," ICBC chairman Jiang Jianqing said in the statement.

"At the same time, the sale of ICEA will help streamline our organisational structure and business integration in Hong Kong by allowing full resource dedication on our Hong Kong investment banking business," he said.

The deals are pending approval from regulators in China, Hong Kong and Canada, the statement added.

Beijing-based ICBC has been active in its overseas acquisitions since it purchased controlling stakes in Indonesia's Halim Bank in December 2006 and Macau's Seng Heng Bank in August 2007.

Last year, it acquired a 20-percent stake in South Africa's Standard Bank, the largest lender in Africa.

State media reported last month that ICBC was eyeing more foreign targets, including troubled US banks, and could make more acquisitions later this year.