The Industrial and Commercial Bank of China will make its foothold in London’s wholesale banking market when it buys control of Standard Bank’s London commodities and currencies arm in a deal worth as much as $1.275 billion. The move is the first foray by a Chinese bank into the UK wholesale banking market and strengthens the already growing economic ties between the two countries. ICBC is to buy an initial 60% of Standard’s global markets arm for $765 million – but, through a series of options, has the potential to buy the remaining 40% over time. The landmark deal will strengthen China’s links with the UK financial community and allow ICBC to become a stronger player on the world stage. Standard Bank is the UK subsidiary and primary legal entity for Standard Bank Group’s global markets business. SBG is the largest bank in Africa.
