CP Group buys Ping An Insurance for $9.4bn

Charoen Pokphand Group is venturing into China's insurance industry with the purchase of the 15.57 per cent stake in Ping An Insurance (Group) Company of China from HSBC Holdings.

HSBC first announced on Nov 19 that it involved in a discussion for the share sale.

In the deal announced today, HSBC Insurance Holdings Ltd and The Hongkong and Shanghai Banking Corporation Limited (HSBC Asia Pacific), indirect wholly-owned subsidiaries of HSBC Holdings have agreed to sell their entire stake for US$9.385 billion.

The 4 buyers are indirect wholly-owned subsidiaries of CP Group - All Gain Trading Ltd, Bloom Fortune Group Ltd, Business Fortune Holdings Ltd and Easy Boom Developments Ltd. Based on the carrying value of the investment in Ping An Insurance at Dec 31, 2011 of $6.373 billion, HSBC is netting a huge profit from the deal.

"This transaction represents further progress in the execution of the Group's strategy. China remains a key market for the Group and we will strengthen our focus on growing our own operations and building on our long-term strategic banking partnership with the Bank of Communications," said HSBC Group Chief Executive, Stuart Gulliver.

The first cash payment will be made on Dec 7 and later payments will be completed on Jan 7, 2013 following regulatory approval from China Insurance Regulatory Commission (CIRC).

Ping An Insurance (Group) Company of China together with its subsidiaries is an insurance and financial services group in China with the ability to provide multiple insurance and financial services and products to corporate and retail customers.

CP once ventured into the Thai insurance company through partnership with Allianz. It opted out recently.

A source from the group said earlier that CP's chairman Dhanin Chearavanont may have adopted a different business view when it comes to the insurance industry in China.

CP has been known as the first foreign investor in China. It has been existing in the country for over 30 years, involving in a range of businesses from agriculture to manufacturing.

Latest stories in this category

• CP Group buys Ping An Insurance for $9.4bn


• Charoen Pokphand Group is venturing into China's..


• FTI fraction 'strongly supports' Payungsak


• Ex-TRT exec Sutham is MCOT chairman

We Recommend

• Cathay Pacific fires flight attendant in Paetongtarn case


• The flight attendant who allegedly threatened to..


• Vegan diet's role in triumph over cancer


• Democrats to pursue 'rice scam'

Comments conditions

Users are solely responsible for their comments.We reserve the right to remove any comment and revoke posting rights for any reason withou prior notice.

Article source: http://www.thethailandlinks.com/2012/12/05/cp-group-buys-ping-an-insurance-for-9-4bn/