CDB looks to domestic acquisitions
16 September 2008
China Development Bank (CDB) may acquire smaller domestic banks as it attempts to become a more commercially oriented lender, the South China Morning Post reported. A source said that CDB, which has traditionally lent money to state-backed infrastructure programs, is looking at possible targets among China's city commercial and joint-stock banks. The bank has a limited branch network and acquiring an existing network is quicker and easier than trying to grow organically. Shanghai-listed Industrial Bank and Shenzhen Development Bank, in which private equity firm TPG has both a stake and management control, are said to be among the potential targets. CDB's domestic investments have so far been limited to minority stakes in retail banks. It has a 20% holding in Xinjiang-based Urumqi City Commercial Bank and spent US$117 million on an undisclosed stake in Lanzhou City Commercial Bank.