BEIJING, CHINA--(Marketwire - Aug. 2, 2012) -
Editors Note: There is a photo associated with this press release.
BMO announced today that it has completed its previously-announced acquisition of a 19.99 per cent interest - the maximum permitted for a foreign investor - in COFCO Trust Co., a subsidiary of COFCO Group. COFCO Trust Co. was established in 2009 and had assets under management of RMB 36 billion (US$5.7 billion) as at December 31, 2011.
The completion of the acquisition followed receipt of all required regulatory approvals. Terms of the deal were not disclosed.
"This strategic investment will allow BMO to leverage its wealth management and capital markets experience to assist COFCO Trust in developing its offering," said Gilles Ouellette, president and chief executive officer, Private Client Group, BMO Financial Group and Chairman of the Board, Bank of Montreal (China) Co. Ltd.
"We are very pleased and excited to have finalized this new partnership with BMO. We look forward to both companies creating value in COFCO Trust and to participating in China's fast-growing financial services market in a strong and fruitful partnership," said Mr. Ning Gaoning, Chairman of COFCO Group.
"We are confident that with this partnership COFCO Trust will be a formidable participant in the development of the wealth management industry in China," said WU Xiaohui, Chief Financial Officer, COFCO Group and Chairman of COFCO Trust Co.
"COFCO Trust provides us with a leading entry point and greater flexibility to offer a wider variety of wealth management products directly and through third parties. It complements our Asia growth strategy and our recent expansion in the region, which includes the incorporation of Bank of Montreal (China) Co. Ltd.; the acquisition of Hong Kong-based Lloyd George Management; and investment management capabilities provided by Shanghai-based Fullgoal Fund Management Co. We are honoured and excited to have COFCO as our partner." said Albert Yu, Managing Director and Head of Asia, BMO Financial Group.
About BMO in China
BMO is the only Canadian and one of only three North American banks with an established subsidiary bank in China. BMO's subsidiary bank, Bank of Montreal (China) Co. Ltd. (BMO ChinaCo), maintains branches in Beijing, Guangzhou and Shanghai, allowing the bank the flexibility to expand its product and service offerings for North American and Chinese clients. BMO also has branches in Beijing and Hong Kong, and a representative office in Taipei, Taiwan. In addition, BMO established an Investment Banking representative office in Beijing and has a 28 per cent equity interest in Fullgoal Fund Management Co., one of China's leading fund management companies. In 2011, BMO acquired Lloyd George Management, a Hong Kong-based boutique asset manager.
About COFCO Group
Founded in 1949, COFCO is the largest supplier of diversified products and services in the agricultural products and food industry in China. It is devoted to utilizing renewable natural resources to provide healthy and nutritious food, high quality lifestyle and services, as well as contributing to improve people's living standards, social prosperity and stability.
About COFCO Trust Co.
Beijing-based COFCO Trust was established in 2009 under the supervision of the China Banking Regulatory Commission with a mandate to provide trust products to institutions and high net worth individuals in China. It has a staff of 85.
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