Stocks News
- NAB pledges to buy 20% stake in Union Trust & Investment
Date: 12-Sep-2007 Sources: (Xinhua Online)
BEIJING, Sept. 11 -- National Australia Bank Ltd yesterday signed an agreement to acquire a 20 percent stake in China's Union Trust & Investment Ltd, with an undisclosed price.
The price was 'not material,' the Melbourne-based bank said yesterday in an announcement to the Australia Stock Exchange.
Union Trust & Investment primarily originates and manages property trusts. The transaction is conditional upon regulatory approval.
National Australia Bank Group Chief Executive Officer John Stewart said yesterday that the investment fits within nabCapital's business portfolio and is in line with the group's objective to leverage its key capabilities in new areas.
NabCapital is a division of the bank which focuses on debt, risk management and investment products for corporate and institutional customers in a global business.
NabCapital Chief Executive Officer John Hooper, who will join the board of the Chinese company, said the investment supports nabCapital's next phase of development.
'It's another step in the ongoing evolution of the nabCapital business as we seek to build a more diverse and sophisticated offering for our clients,' Hooper said.
The biggest bank in Australia follows its rivals in building up strength in China as the country experiences growing demand for financial products.
Commonwealth Bank of Australia, the second-biggest lender in Australia, owns stakes in China's Jinan City Commercial Bank and Hangzhou City Commercial Bank.
Australia & New Zealand Banking Group, the third-biggest player, owns 20 percent of Tianjin City Commercial Bank and agreed in Nov. to buy 19.9 percent of Shanghai Rural Commercial Bank.
National Australia Bank allied with China UnionPay, the sole operator of the country's bank card payment system, in Sept. 2006 to allow Chinese visitors to use their bank cards in Australia.
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