Connect with us

Hi, what are you looking for?


Bank of China abandons Rothschild deal

SHANGHAI, April 2 – Bank of China said on Thursday it had abandoned its bid to buy a stake in French private bank Edmond de Rothschild Finance Company after Chinese regulators failed to approve the deal.

Bank of China, one of China\’s big four state banks, announced in September it would pay 236 million euros (342 million dollars) for a 20 percent stake in the French private bank.

"The agreement became invalid automatically as the deadline passed," Bank of China spokesman Wang Zhaowen told AFP.

Bank of China had been forced to extend the original deadline for the deal to April 1 from December 31 after the government failed to grant its approval before the initial deadline.

Wang said the bank would not seek a further extension but remains committed to developing its private banking business and would "seek other ways of cooperation" with the French bank. He did not elaborate.

China has tightened up scrutiny of overseas investments by domestic institutions after several foreign investments by Chinese financial groups over the past two years have led to huge paper losses.

China\’s 200-billion-dollar sovereign wealth fund, China Investment Corp., paid five billion dollars in 2007 for a 9.9 percent stake in Morgan Stanley, which has lost two-thirds of its market value since the investment.

Last year, China\’s Ping An Insurance Group said it would book a potential loss of 2.3 billion dollars for its investment in European financial group Fortis NV, which was hit by the global financial crisis and dismantled.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...