Standard Chartered Bank and the banking environment in Asia
A couple of events took place in the banking sector across Asia. In Singapore, a major shareholder of Standard Chartered Bank (SCB), Tan Sri Khoo Teck Puat, 86, has died. Forbes rated him as Singapore's richest man. He died suddenly on Saturday afternoon, February 21, 2004 and leaves his 14 children a US$5 billion fortune, including just over 13 per cent of Standard Chartered. It is said that his children have no interest in running the bank, which might leave it as a takeover target.
Asia’s banking sector is red hot. Just a day after above event, Citibank in cooperation with JP Morgan and the Carcyle Group acquired Koram Bank for US$2.7 billion – not much, for this voracious acquirer. Interestingly, Citibank was in competition with Standard Chartered Bank for Koram Bank, in which it has a 10% stake. This is a continuation of Citi’s continued expansion in Asia, which it sees as crucial for it future. In addition, it fits nicely with Citi’s recent taste for consumer markets and creditcards – it acquired acquire Sears' US$29 billion portfolio of private label and bankcard credit card receivables in the US in July 2003. The acquisition included Sears' Financial Products business and credit card facilities with approximately 8,300 employees (5,800 full-time employees). In Korea, the creditcard market is pretty hot, as many banks moved into the segment after the Asian crisis of 1997/8. However, it got verymuch colder recently as many creditcard holders defaulted – as such, Citi might bring appropriate knowledge to the market.
And HSBC just placed a bid for Korea First bank – is it to counter Citigroup?
The interesting part is that while SCB also expanded rapidly in Asia, it had been in discussion as takeover target for a longer time already. Sources say that Barclay’s Bank, Bank of America, Citigroup could be interested, while HSBC and Royal Bank of Scotland might have the firepower to place a bid as well.
(By Asia Business Consulting)
Asia’s banking sector is red hot. Just a day after above event, Citibank in cooperation with JP Morgan and the Carcyle Group acquired Koram Bank for US$2.7 billion – not much, for this voracious acquirer. Interestingly, Citibank was in competition with Standard Chartered Bank for Koram Bank, in which it has a 10% stake. This is a continuation of Citi’s continued expansion in Asia, which it sees as crucial for it future. In addition, it fits nicely with Citi’s recent taste for consumer markets and creditcards – it acquired acquire Sears' US$29 billion portfolio of private label and bankcard credit card receivables in the US in July 2003. The acquisition included Sears' Financial Products business and credit card facilities with approximately 8,300 employees (5,800 full-time employees). In Korea, the creditcard market is pretty hot, as many banks moved into the segment after the Asian crisis of 1997/8. However, it got verymuch colder recently as many creditcard holders defaulted – as such, Citi might bring appropriate knowledge to the market.
And HSBC just placed a bid for Korea First bank – is it to counter Citigroup?
The interesting part is that while SCB also expanded rapidly in Asia, it had been in discussion as takeover target for a longer time already. Sources say that Barclay’s Bank, Bank of America, Citigroup could be interested, while HSBC and Royal Bank of Scotland might have the firepower to place a bid as well.
(By Asia Business Consulting)
posted by Andreas @ 7:37 pm
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