China Construction Bank buys Brazil's BIC

China Construction Bank, one of China's big four lenders, said Friday that it had entered into a share purchase and sale agreement with Brazil's bank BIC to acquire BIC's controlling stake for 1.6 billion Brazilian Reais (720 million U.S. dollars). In a statement filed to the Hong Kong and Shanghai stock exchanges, China Construction Bank said it had agreed to buy 157.4 million ordinary shares and 24.7 million preferred shares issued by BIC, by which it would hold 72 percent of BIC's total shares upon completion of the transaction. China Construction Bank didn't disclose the purchasing price of BIC's single share. But BIC, in its statement, said CCB bought the shares at 8.9017 Brazilian Reais each, compared with BIC's close price of 7.5 Reais on Thursday. The transaction is subject to approvals from the China Banking Regulatory Commission, Banco Central do Brasil (Brazil's central bank) and other regulatory authorities in China and other jurisdictions. Founded in 1938, BIC has focused on providing loan services to medium-sized companies. It has 38 service outlets in Brazil and one branch in the Cayman Islands. Its network covers 33 major cities in 19 provinces in Brazil with a total of about 900 employees. BIC has been listed on the Sao Paulo Stock Exchange since 2007. China Construction Bank said Brazil has been one of its target markets, and it has been actively seeking opportunities for entrance. The acquisition would mark a significant step in the globalization strategy of China Construction Bank, facilitating future expansion of the bank's networks in Latin America, it said.