Minsheng Bank: Penetrating The US Market Through Acquisition Case Solution & Answer

Founded in 1996, China Minsheng Banking Corporation Limited (“Minsheng”) was the first private commercial bank in China. In 2006, Minsheng had acquired about 130 billion dollars in assets and executed nearly 330 bank branches throughout the country. The Banker always praised the development of Minsheng and the number 310 on their 1000 world banks best companies in 2004, the number of 287 in 2005 and number 247 in 2006. In early March, 2008 Minsheng received the green light from the Regulatory Commission China Banking to buy a 4.9% stake in the company based in the United States, UCBH Holdings, Inc. (“UCBH”) for $ 95.7 million. The agreement finally take stake in Minsheng UCBH 9.9%, with a total of approximately $ 200 million. Minsheng The acquisition not only distinguished himself as the first institution in the mainland to invest in a U.S. bank China, but was also seen as an important Chinese banks to enter the United States and international markets step. Moreover, UCBH soon take this opportunity to make their own movements in China, on the basis of their affiliation with Minsheng totalingacquire at other Chinese banks. This case study examines the process of international expansion through acquisitions in the banking sector and the placement of another bank in the world market, covering topics such as value creation, the impact of government regulation and international barriers, China’s banking sector and its development, and risks.
by
Ricky Lai,
Gerald Yong Gao,
Jiangyong Lu,
Hung Gay Fung
Source: University of Hong Kong
18 pages.
Release: June 5, 2008. Prod #: HKU751-PDF-ENG
Minsheng Bank to enter the U.S. market solution through an acquisition

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