ICBC to buy Standard Bank stake

By George Chen and Marius Bosch

SHANGHAI/JOHANNESBURG (Reuters) - China's biggest lender ICBC (1398.HK: Quote, Profile, Research, Stock Buzz) is to buy 20 percent of South Africa's Standard Bank (SBKJ.J: Quote, Profile, Research, Stock Buzz) for $5.6 billion in cash, the biggest foreign acquisition by a Chinese commercial bank yet.

The move announced on Thursday -- which will also be the largest foreign investment in Africa -- comes as Beijing encourages major state firms to expand abroad, particularly in developing countries.

"This acquisition will help to build a foundation for ICBC to become a global bank," Chairman Jiang Jianqing told reporters in Beijing.

Industrial and Commercial Bank of China said earlier in a statement buying a stake in Standard Bank, Africa's biggest banking group by assets, would enable it to capitalize on the growth prospects in Africa's largest economy.

"ICBC believes the best method of capturing these growth opportunities is through a strategic alliance with a large South African bank with significant operations on the African continent," ICBC said.

The stake purchase is the biggest foreign investment yet in Africa, according to Dealogic data.

Standard Bank Chief Executive Officer Jacko Maree said the transaction was put together in 45 days after initial talks first started two years ago.

"We think it (the ICBC investment) is an enormous vote of confidence in South Africa and in Africa," Maree said at a presentation on the transaction in Johannesburg.