Bank of America Sells Asian Retail Franchise to China Construction Bank
By: PR Newswire
Posted on August 24, 2006 at 08:00 AM EDT
CHARLOTTE, N.C., Aug. 24 /PRNewswire/ -- Bank of America Corporation has signed a definitive agreement to sell Bank of America (Asia) Ltd., its retail and commercial franchise in Hong Kong and Macau, to China Construction Bank (CCB).
Bank of America's corporate banking and wholesale franchise, including treasury services, capital markets, investment banking and corporate lending, and other businesses conducted through Bank of America, N.A. or Banc of America Securities are not impacted by this sale.
The total consideration is approximately $1.25 billion in cash.
"While Bank of America will continue to invest in and build out our wholesale banking businesses in Asia, this sale reflects Bank of America's philosophy of having significant market share or presence where we choose to do business," said Kenneth D. Lewis, Bank of America chairman and chief executive officer. "Bank of America (Asia) is 17th in assets in Hong Kong, a local market dominated by a few top players. After an extensive review, we concluded that we did not have the economies of scale to remain competitive."
Bank of America has owned a controlling stake in Bank of America (Asia) Ltd. since 1971. The franchise includes 14 offices in Hong Kong and three offices in Macau with approximately $6.3 billion in assets and $3.7 billion in deposits.
Closing is expected to be completed by year-end 2006 and is subject to regulatory approval and standard closing conditions.
Bank of America is one of the world's largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services. The company provides unmatched convenience in the United States, serving more than 54 million consumer and small business relationships with more than 5,700 retail banking offices, nearly 17,000 ATMs and award-winning online banking with more than 19.8 million active users. Bank of America is the No. 1 overall Small Business Administration (SBA) lender in the United States and the No. 1 SBA lender to minority-owned small businesses. The company serves clients in 175 countries and has relationships with 98 percent of the U.S. Fortune 500 companies and 79 percent of the Global Fortune 500. Bank of America Corporation stock (NYSE:BAC) is listed on the New York Stock Exchange.
Source: Bank of America Corporation
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