Bank of East Asia (BEA) hopes to complete at least one of its long-awaited United States acquisitions before the end of the year, according to chairman and chief executive David Li Kwok-po.
Widely believed to be a small San Francisco-based bank serving a largely Chinese customer base, the first of two likely US targets could lift BEA's assets through the US$20 billion level from about US$18.4 billion.
This would qualify BEA to apply to the Bank of China for an expansion of its branch network in the mainland, analysts said.
In remarks made to Bloomberg at yesterday's launch of a co-branded BEA/My Yahoo! Web site, Mr Li said: 'I can confirm we are looking at purchasing a bank or two banks in the US and my colleagues are in the US negotiating with the owners.' Analysts attending the conference reported that Mr Li said he hoped to close a deal with one of the banks before the end of the year.
'This has been expected for some time now,' said Anthony Lok, regional head of banking sector analysis for Nomura International.
'If the deal is done at the top end of the range previously forecast by BEA - or about US$3 billion - it will be a small US banking operation.
'But in one fell swoop, it will enable BEA to breach the US$20 billion threshold required for expansion in the mainland,' he added.
