China CITIC Bank said that parent company CITIC Group will pay US$1.8 billion for a 70.32% stake in affiliate CITIC International Financial Holdings (CIFH), the South China Morning Post reported. CITIC Group hopes the stake will help it to expand overseas. CIFH had been listed in Hong Kong before being privatized by CITIC Group and Spanish bank Banco Bilbao Vizcaya Argentaria (BBVA) last year. BBVA will retain a 29.68% stake in CIFH. CITIC Bank Chairman Kong Dan said the acquisition would help to integrate and optimize resources and enhance the bank’s competitiveness. Analysts said the purchase would have a positive overall effect on the bank’s operations. CITIC Bank’s first-quarter profit fell 23% to US$470 million.
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