BMO announced today that it has entered into a definitive agreement to acquire a 19.99 per cent interest – the maximum permitted for a foreign investor – in COFCO Trust Co., a subsidiary of COFCO Group – one of China’s largest state-owned enterprises with operations across a variety of sectors, including agriculture and financial services. COFCO Trust Co. was established in 2009 and had assets under management of RMB 36 billion (US$5.7 billion) as at December 31, 2011.
“BMO’s commitment to China dates back to a year after our founding as Canada’s first bank in 1817. As we looked to expand BMO’s offering to high net worth and institutional clients in China through a local partner, COFCO Trust emerged as the perfect choice,” said Gilles Ouellette, President and Chief Executive Officer of BMO Financial Group’s Private Client Group and Chairman of BMO ChinaCo.
Terms of the deal were not disclosed. The deal is subject to approval from the China Banking Regulatory Commission (CBRC) and the Office of the Superintendent of Financial Institutions of Canada (OSFI), and to other customary closing conditions.
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