ICBC Close to Buying Big Stake in Standard Bank's London Trading Business
Would Acquire 60% of Commodities- and Forex-Trading Business
BEIJING—Industrial & Commercial Bank of China Ltd. 601988.SH +0.40% , China's largest bank by assets, is close to acquiring a controlling stake in Standard Bank Group Ltd. SBK.JO -3.28% 's U.K. commodities- and foreign-exchange-trading business for about $700 million, according to people with direct knowledge of the matter.
State-controlled ICBC is nearing a deal to buy a 60% stake in the South African bank's commodities and foreign-exchange operation in London, the people said. Under the proposed transaction, ICBC would have an option to increase the stake to 80% in a couple of years following the purchase, according to the people.
Obstacles to a deal remain, including whether the operation would be able to retain key personnel, the people said. Final details of the transaction are still being worked out, and the terms remain subject to change, they said.