ICBC Chairman Jiang Jianqing Talks About Overseas Mergers And Acquisitions

As we all know, success is no accident.

Only by doing the right thing at the right time can success become a reality.

Or say

Has been committed to global layout and advancement

Jiang Jianqing stressed in the interview: "in the process of internationalization, ICBC has its own clear.

"In the past ten years, ICBC has about ten mergers and acquisitions.

We are the largest bank in China.

Luckily, we failed every time, "he said.

Speaking of successful experience, Jiang Jianqing thought that it was nothing more than "cautious".

Be cautious when entering, prudent in the process of progress, and equally cautious after successful mergers and acquisitions.

ICBC has 4 million company customers, and the diversification of customer demand also requires ICBC to have a clear understanding of its strategy.

In addition to following the client's strategy, Jiang Jianqing believes that the assessment before mergers and acquisitions is very important, such as the qualification level and price level of the other side, the business scope and business variety in this country, and the difficulty of market access in this country.

{page_break}

"M & A is a matter of scarcity and timing. These factors are very complex technical assessments, and in simple words, induction is to enter at a suitable price at a suitable time and at a suitable location."

Jiang Jianqing believes that the success of merger lies in the success of post merger integration, so the integration after merger is the key to M & A.

"In mergers and acquisitions, you will encounter different contradictions in different countries. There are different management cultures here, and different ethnic, cultural, religious and other factors should also be considered."

There are different ways of dealing with different M & A cases.

Generally speaking, in some small M & A cases, ICBC takes the right of management.

The advantage of management is that it is easy for the Merged Institutions and ICBC to agree with culture and management.

Jiang Jianqing admits that sometimes there are two situations that lead to no managerial power after mergers and acquisitions.

The first is the limit imposed by some countries on the entry of foreign banks. This is a statutory limitation.

The second situation is to meet a large bank. His management team is excellent and runs very well. Under such circumstances, ICBC can further control risk management by attending the board of directors.

ICBC's acquisition of Standard Bank of South Africa is the second case.

Standard Bank of South Africa is the largest bank in Africa, and ICBC accounts for 20% of the shares after mergers and acquisitions.

"This is a very successful M & A," he said.

Jiang Jianqing said that industrial and commercial bank assets, profits and 97% of all businesses came from China.

"Such a structure also gives us some vague worries that we are not enough to diversify our businesses.

In addition, with the continuous development of China's internationalization, as China's large numbers of enterprises go out, they also need to strengthen their services to these enterprises.

"Of course," Jiang Jianqing stressed, "overseas M & A is not a rose garden, but a battlefield."