Goldman Sachs to take 100 per cent ownership of China joint venture
- American investment bank has reached definitive agreement to buy out its joint venture partner
- Agreement comes as banks, insurers and asset managers rush to grab control of their mainland businesses
Goldman Sachs plans to acquire 100 per cent of its mainland Chinese joint venture, the latest global bank to seek full control of its business as Beijing further opens up the financial sector.
The American investment bank signed a definitive agreement with its partner, Beijing Gao Hua Securities, to acquire the outstanding shares of Goldman Sachs Gao Hua it does not already own and began the formal process with regulators to take full ownership of the joint venture, according to an internal memorandum seen by the Post.
“One hundred per cent ownership of our franchise on the mainland represents a significant commitment to and investment in China,” David Solomon, Goldman’s CEO; John Waldron, its chief operating officer; and Stephen Scherr, its chief financial officer, said in the memo. “This focuses on growing and strengthening our existing China businesses, expanding our addressable market and investing in talent and technology.”
Goldman plans to rename the joint venture, Goldman Sachs (China) Securities Company, when it takes full ownership. The joint venture was started in 2004, but Goldman has operated in the Chinese capital markets since the 1990s.
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A Goldman Sachs spokesman confirmed the contents of the memo on Tuesday.