BBVA moves into China acquiring a stake in Citic

Banco Bilbao Vizcaya Argentaria BBVA, SpainÆs second largest bank, has become the newest entrant into the China-Hong Kong banking arena acquiring 5% of China Citic Bank and 15% of Citic International Financial Holdings Citic International for Ç989 million $1.27 billion.

BBVA is spending Ç501 million for a 5% stake in Citic Bank with an option to increase the stake to 9.9%. The balance of Ç488 million has gone to buy a 15% stake in Citic International. BBVA said its stake in Citic International ôcould increase in the coming monthsö and that ôthe alliance between BBVA and Citic covers the development of retail and corporate banking in mainland...