Industrial and Commercial Bank of China (ICBC) (1398.HK) has agreed to buy a large stake in Standard Bank (SBKJ.J), Africa's biggest lender by assets, a source familiar with the situation said, in a deal reported to be worth $5.5 billion.
FT.com, citing a banker close to the deal, reported that ICBC will pay $5.5 billion for a stake of about 20 percent in the South African bank.
This would be the biggest overseas acquisition by a Chinese commercial bank as Beijing encourages major state firms to expand abroad, particularly in developing countries.
The source, who asked not to be identified, told Reuters ICBC (stock code: 601398) would become the single largest shareholder in the South African bank after the purchase, but declined to reveal the size of the stake that ICBC is buying.
Johannesburg-based Standard Bank operates in 18 African countries, including South Africa, and 21 other countries across the world.
"ICBC is buying into Standard Bank because Chinese companies are swarming to Africa to do business. We want to boost our financial services such as trade finance to Chinese clients there," the source said.