Minsheng Bank: Penetrating The US Market Through Acquisition Harvard Case Solution & Analysis

By 2006, Minsheng created nearly 330 banking offices across the nation and had got almost US$130 billion in total assets. The Banker magazine praised the development of Minsheng, ranking it number 310 in in 2005, and company banks in the world in 2004, number 287 its top 1,000 number 247 in 2006. In early March 2008, Minsheng got the green light from the China Banking Regulatory Commission to purchase a 4.9% stake in US-based banking holding company, UCBH Holdings, Inc. ("UCBH") for US$95.7 million. The price would eventually take Minsheng's stake in UCBH to 9.9%, totalling around US$200 million.

The acquisition distinguished Minsheng as the first Chinese mainland association to put money into an US bank, but was also viewed as a landmark for the Chinese banks inflowing the US and international market. On the opposite side, UCBH would shortly use this occasion to make its own move into China, leveraging its association with Minsheng to totally acquire other Chinese banks. This case examines the procedure for international expansion through acquisitions in the banking industry and the positioning of a growing bank in the global market, covering matters such as value creation, impact of government regulation and international obstacles, the Chinese banking industry and its development, and the related threats.

PUBLICATION DATE: June 05, 2008 PRODUCT #: HKU751-HCB-ENG

Minsheng Bank Penetrating The US Market Through Acquisition Case Study Solution

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