INDUSTRIAL and Commercial Bank of China Ltd. (ICBC), China’s largest bank by assets, is close to acquiring a controlling stake in Standard Bank Group Ltd.’s U.K. commodities and foreign-exchange-trading business for about US$700 million, according to people with direct knowledge of the matter.

    State-controlled ICBC is nearing a deal to buy a 60-percent stake in the South African bank’s commodities and foreign-exchange operation in London, the people said. Under the proposed transaction, ICBC would have an option to increase the stake to 80 percent in a couple of years following the purchase, according to the people.

    Obstacles to a deal remain, including whether the operation would be able to retain key personnel, the people said. Final details of the transaction are still being worked out, and the terms remain subject to change, they said.

    ICBC has aimed to spread its presence to 50 countries and regions in the following year, according to ICBC executives.

    ICBC executives had said the bank will focus on expanding further in emerging markets, where they say the growth potential is greater than developed markets because of the lack of competition from Western lenders. (SD-Agencies)