* Terms of deal not disclosed
* Second takeover in two months for BMO
* Acquisition of wealth manager to close in Q3
(Adds background, comment. In U.S. dollars unless noted)
By Cameron French
TORONTO, Jan 11 Bank of Montreal (BMO.TO)
(BMO.N) is buying Hong Kong-based wealth management firm Lloyd
George Management to bulk up its presence in China's
fast-growing financial sector.
The acquisition, for which terms were not disclosed on
Tuesday, is the second deal announced in as many months by
Canada's BMO, which bought Wisconsin lender Marshall & Ilsley
Corp MI.N for about $4.1 billion in December.
Lloyd George, which also has a presence in London,
Singapore, Mumbai and Florida, has about $6 billion in assets
Struggling for growth in its home market and flush with
capital after emerging from the financial crisis in solid
shape, BMO has been trying to expand its international
The acquisition doesn't materially add to the bank's
assets, but could eventually pay dividends, said Craig Fehr, an
analyst at Edward Jones in St. Louis.
"It allows them a bit of increased penetration into a
market that I think will continue to be a long-term focus, not
only for Bank of Montreal, but several of the Canadian banks,"
The acquisition is expected to close early in the third
quarter, BMO, Canada's No. 4 bank, said.
BMO will retain Lloyd's entire team and Robert Lloyd George
will remain chairman of the company, which will continue to
operate under the name Lloyd George Management.
BMO became the first Canadian bank to incorporate in China
in November, and Chief Executive Bill Downe said at the time it
would seek wealth management assets in the country.
Speaking at a bank conference in Toronto on Tuesday, Downe
said the Lloyd George acquisition was "highly complementary to
our global asset management business".
Bank of Montreal's shares were up 38 Canadian cents at
C$58.46 on the Toronto Stock Exchange at midday on Tuesday.
Royal Bank of Canada (RY.TO), and Bank of Nova Scotia
(BNS.TO), the country's No.1 and No. 3 lenders by assets, are
also building a presence in China.
In November, RBC bought Fortis Bank SA's Hong Kong wealth
(Additional reporting by Sweta Singh in Bangalore; editing by