Hua Xia Bank, Deutsche Bank (XETRA:DBKGn.DE/NYSE:DB) and Sal. Oppenheim jr. & Cie. KGaA, today announced that a consortium comprising Deutsche Bank and Sal. Oppenheim have signed a binding agreement to buy a total of 587.2 million shares in Hua Xia Bank, amounting to a 14 percent shareholding. Subject to regulatory approvals Deutsche Bank and Sal. Oppenheim will purchase the shares from 18 shareholders of Hua Xia Bank for a total of €272 million. Deutsche Bank will take 9.9 percent of Hua Xia Bank, while Sal. Oppenheim will take 4.1 percent.
Deutsche Bank and Hua Xia Bank will also enter into a wide ranging cooperation agreement. This will include the Banks’ partnering in credit cards, affluent customer business, the distribution of investment products, and cash management services. Deutsche Bank will also provide comprehensive technical support and assistance to Hua Xia Bank in relation to risk management, retail and corporate banking, and governance. Initially Deutsche Bank will also be granted one seat on Hua Xia Bank’s board.
Liu Haiyan, Chairman of Hua Xia Bank, said at the signing ceremony, “Deutsche Bank is one of the worlds leading financial institutions with a long history and great depth of experience. The cooperation between Hua Xia Bank and Deutsche Bank will deliver exciting opportunities for the partnership and realize significant mutual benefits."
Rainer Neske, Member of the Group Executive Committee of Deutsche Bank said, “In Hua Xia Bank, we have a strong and respected strategic partner in China, which is an important growth market for Deutsche Bank. This investment will enable us to participate directly in the development of China’s retail financial services sector; a dynamic market, with rapidly growing consumer affluence and significantly increasing financial sophistication. There is a significant opportunity to leverage our international retail and financial product expertise into this exciting market.”
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