In Dec 30, 2006, Industrial and Commercial Bank of China Limited ("ICBC" hereinafter) and Halim Bank Indonesia entered into Acquisition Agreement. The Agreement stated that ICBC will acquire 90% of Halim Bank. Former shareholders hold the remaining 10% shares at this point of time (both parties agreed that ICBC had an option to buy the balance in three years later according to Indonesia law). Final Agreement has yet to be waiting for the approval from China Banking Regulatory Commission and Indonesia Central Bank.
This was ICBC's first acquisition of a foreign bank, and it was also the first time for ICBC to enter overseas market through acquisition, and it provided ICBC with valuable experience to expand into international financial markets.
Since establishing the first overseas branch in Singapore in 1993, ICBC has been proactive in setting the agenda of overseas operation. By the end of June 30, 2006, ICBC enjoyed fast overseas growth through a service network of 98 holding branches in the world major financial centers. In 2000, ICBC successfully acquired Hong Kong Union Bank and restructured as ICBC (Asia) Ltd. In 2004, ICBC made another move in acquiring and integrating the retail and commercial banking services of Belgian Fortis Bank in Hong Kong.
Till the end of June 30, 2006, ICBC has owned a total asset of over RMB 7 trillion. ICBC is the largest commercial bank in China with more than 2.5 million corporate clients and 150 million individual customers. ICBC maintains the largest market shares in the domestic market in all major banking services. On Oct 27, 2006, ICBC wrote the history in creating world largest IPO ever by listing on the Shanghai and Hong Kong stock exchanges, raising a total fund of USD21.9 billion.
By the end of Dec. 31, 2005, Halim Bank Indonesia's total asset was 488.5 billion of Indonesia Rupiah (nearly USD 50 million). Its capital adequacy ratio was 57.88%, asset return rate was 2.53%, NPL at 1.32% and 12 retail outlets. From 2000 up till now, Halim Bank is the "Outperforming Bank of Indonesia" selected for seven years in a row by premier journal InfoBank in Indonesia.
