ICBC to buy S. Africa Standard Bank´s stake

China's biggest lender ICBC has confirmed plans to buy 20 percent of South Africa's Standard Bank, the largest commercial bank in Africa. The 5.5 billion US dollar purchase marks the biggest foreign acquisition by a Chinese commercial bank to date.

With the purchase, ICBC will become the top shareholder of the Johannesburg-listed Standard Bank. The move will also be the largest foreign investment in Africa. The announcement this week comes as China encourages major state firms to expand abroad, particularly in developing regions.

ICBC says the acquisition will help the state lender become a global bank. Meanwhile Standard Bank says the ICBC investment is an enormous vote of confidence in not just South Africa, but Africa as a whole. The deal is expected to be completed at the beginning of next year.

Editor:XiongQu