Bank of China is set to unveil a deal with the Rothschild family on Thursday for the Chinese bank to take a stake in private bank La Compagnie Financiere Edmond de Rothschild, two sources close to the matter said.
A spokeswoman at La Compagnie Financiere Edmond de Rothschild declined comment but said a news conference was scheduled for later on Thursday.
The sources declined to comment on the size of Bank of China’s stake but added that the Rothschild family would retain control.
The expected deal is the latest sign of the growing financial power of China and other Asian countries. Banks in China, Singapore and Dubai have bought holdings in banks such as Morgan Stanley, Barclays and Citigroup.
La Compagnie Financiere Edmond de Rothschild is a private bank business of the Rothschild family. The business has been seeking an overseas partner for some time.
According to the company’s website, LCF Edmond de Rothschild made a net profit of 105 million euros in 2007.
(Reporting by Yann Le Guernigou; Editing by Paul Bolding and David Holmes)
Source: Thomson Merger News