ICBC Sees Potential in Argentina 中国工商银行：阿根廷市场有潜力

By newsdoug on June 20, 2011

ICBC (HKEx: 1398; Shanghai: 601398), while busy trying to follow Beijing’s latest economic-cooling policy directives at home, is behaving decidedly more commercial in its overseas M&A actions with its latest plan to purchase 80 percent of Standard Bank’s Argentine unit. (English article) Local media in Argentina are reporting that ICBC will pay $700-$800 million for the stake, while South Africa’s Standard Bank will retain the remaining 20 percent stake. Most readers will recall that ICBC marches into Argentina ICBC holds a 20 percent stake in Standard Bank, its main partner in Africa. Without knowing too much about Standard Bank’s Argentine businesl, I have to say that at least on the surface this deal looks like exactly the kind of global M&A that ICBC should be pursuing. I really like ICBC’s tie-up with Standard Bank, one of Africa’s top lenders, which has helped to raise ICBC’s profile and portfolio in Africa by drawing on Standard Bank’s strong ties to the continent. Argentina, and more broadly Latin America, is another major emerging market where ICBC could also do well if it has the right local partners. Standard Bank’s Argentine unit looks like it could fit that description, qualifying as a solid mid-sized player with a market cap of around $1 billion. These are exactly the kinds of overseas markets that ICBC should be focusing on, seeking to draw on its broader experience as an emerging market lender and also homing in on locations where Chinese firms are actively making investments. I would look for more deals of this size in emerging markets from ICBC in the year ahead, both with Standard Bank and also on its own.

Bottom line: ICBC’s move into Argentina through its purchase of a local bank is a smart acquisition, drawing on its emerging market expertise and its ties with Standard Bank.

中国工商银行<601398.SS> <1398.HK>的海外并购更具市场化的味道。据阿根廷媒体报导，日前工商银行计划收购南非标准银行阿根廷分公司的80%股权，交易金额可能为7-8亿美元，标准银行将保留其余20%股权。很多读者应该记得工商银行拥有南非标准银行20%股权。虽然我对标准银行的阿根廷业务不甚了解，但至少表面来看，这宗交易正是工商银行应该追逐的全球并购方式。我个人非常喜欢工商银行与标准银行的联姻，帮助提高了工商银行在非洲的知名度和市场份额。阿根廷，或者更广意义上的拉丁美洲，是另外一个重要的新兴市场，如在当地有合适的合作夥伴，工商银行也可能取得成功。标准银行阿根廷分部看似正合条件，10亿美元左右的市值算得上是中等规模。这正是工行需要重点出击的海外市场。我认为未来一年工商银行还会有更多此类规模的交易，无论是与标准银行合作或者是单独开展。

一句话：工商银行通过收购当地银行打入阿根廷是非常明智的收购交易，积极利用了其在新兴市场的专业经验与与标准银行的关系。