Singapore bank in $5bn spending spree

Singapore - Singapore's Overseas-Chinese Banking Corp (OCBC) said on Monday it was in exclusive talks to acquire Hong Kong's Wing Hang Bank, in a move that could give it greater access to the Chinese market.

The report said the deal could potentially be worth about $5.0bn.

OCBC said in a statement to the Singapore Exchange it signed an "exclusivity agreement" on 31 December with the substantial shareholders of Wing Hang.

Under the accord, the shareholders agreed to hold exclusive talks with OCBC until the end of January to finalise terms "for a possible transaction" that would involve the Singapore bank making a general offer for all Wing Hang shares.

OCBC, Singapore's second biggest bank by total assets, stressed that no deal has yet been reached.

Subsidiaries

"For banks in Asia, acquiring a Hong Kong bank would provide immediate access to China as most of them have locally incorporated subsidiaries in the mainland," said Wu.