Citigroup, Societe Generale Revise Bids For Chinese Bank, Wall Street Journal Reports

Two consortia, one led by Citigroup the other by Societe Generale, have offered revised bids for 85% of Guangdong Development Bank, according to a Wall Street Journal Report
By None

Two consortia, one led by Citigroup the other by Societe Generale, have offered revised bids for 85% of Guangdong Development Bank, according to a Wall Street Journal Report.

The bids, which were submitted to the Guangdong provincial government, mark a shift in the structures of the consortia in an effort to comply with newly implemented Chinese regulations. Under the new structures, Citigroup and Societe Generale would bring in new partners and scale down the size of foreign stakes in order to meet the requirements.

Efforts to buy Guangdong Development Bank have taken almost a year, often appearing to be nearing a conclusion before turning back to negotiations. Representing a major foothold into the country’s increasingly attractive consumer finance market, competition for the bank has been fierce.

The two consortia submitted bids in December seeking control of the bank but were sent back to revise their bids because of regulatory limits on foreign ownership. China limits a single foreign financial institution’s holding in a domestic bank to less than 20% and total foreign ownership to less than 25%.

«