China Mobile is buying a 20% strategic stake in Shanghai Pudong Development Bank (SPD) for CY40bn (US$5.9bn), according to a research report by brokerage firm Guotai Junan Securities.
Shanghai Pudong Development Bank, in which Citigroup currently holds…
China Mobile is buying a 20% strategic stake in Shanghai Pudong Development Bank (SPD) for CY40bn (US$5.9bn), according to a research report by brokerage firm Guotai Junan Securities.
Shanghai Pudong Development Bank, in which Citigroup currently holds 3.8%, is a medium-sized Chinese bank with 491 outlets in China
China Mobile is the world’s largest mobile operator by subscribers and has US$37.5bn in ready cash.
The deal is subject to approval from the China Banking Regulatory Commission.
The rationale behind the deal may be linked with China Mobile’s plan to develop and implement a mobile payments system.
