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Credit Agricole Asia brokerage sale deadline extended
June 28, 2013 / 2:27 PM / 4 years ago

Credit Agricole Asia brokerage sale deadline extended

* Delay follows Taiwan regulatory snag

* CITIC, Credit Agricole push deadline to end-July

PARIS, June 28 (Reuters) - China’s CITIC Securities said on Friday that it had agreed to extend by a month a deadline for a final deal to acquire French bank Credit Agricole’s CLSA Asian brokerage unit.

Earlier this month, sources had told Reuters that the $1.25 billion agreement had hit a snag in Taiwan as regulators resisted a plan for CITIC, a Chinese company, to own an entity on Taiwanese turf.

This regulatory stand-off over the sale of CLSA shows the sensitivities in Taiwan towards China taking a stake in the local economy. But a rejection by Taiwan would be unlikely to kill the deal or impact the asking price, one source also told Reuters earlier this month.

In the statement announcing the postponement of the deadline to July 31 from June 30, CITIC said only that certain of the deal’s conditions had not yet been satisfied or waived.

“Both parties are working towards completion of the 80.1 percent acquisition on or before 31, July 2013,” CITIC’s statement said.

Credit Agricole and CITIC announced the two-part deal last July. CITIC agreed to buy 19.9 percent of CLSA and pledged to buy the rest within months. The deal was conditional on securing all regulatory approvals and was set to close around mid-2013.

Reporting By Christian Plumb. Editing by Jane Merriman

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