Minsheng Bank: Penetrating The US Market Through Acquisition Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Founded in 1996, China Minsheng Banking Corporation Limited ("Minsheng") became the first private commercial bank in China. By 2006, Minsheng acquired almost U.S. $ 130 billion in total assets and installed nearly 330 banking offices throughout the country. The Banker magazine has consistently praised the development of Minsheng, which occupies its number 310 in the top 1,000 commercial banks in the world in 2004, the number of 287 in 2005, and the number 247 in 2006. In early March 2008, Minsheng has received the green light from the China Banking Regulatory Commission to buy 4.9% stake in the U.S. bank holding company, UCBH Holdings, Inc ("UCBH») for U.S. $ 95.7 million. Deal eventually take Minsheng stake in UCBH to 9.9%, for a total of about 200 million. acquisition not only differ Minsheng as the first Chinese mainland institutions to invest in a U.S. bank, but also be seen as a milestone for Chinese banks to enter the U.S. and international markets. On the other hand, UCBH soon to take this opportunity to make their moves to China, through its relationship with Minsheng totalingacquire in other Chinese banks. This case deals with the process of international expansion through acquisitions in the banking sector and positioning growing bank in the world market covering issues such as the creation of value, the impact of government regulation and international barriers, the Chinese banking sector and its development, and the associated risks. "Hide
by Ricky Lai, Gerald Yong Gao, Jiangyong Lu, Gay Hung Fung Source University of Hong Kong, 18 pages. Publication Date: June 5, 2008. Prod. #: HKU751-PDF-ENG