U.S based investment bank JPMorgan Chase & Co. (JPM) announced having acquired additional 20% stake in its Chinese securities joint venture bringing its total stake in the business entity at 71%.
According to an exchange filing made on November 2, the bank will be purchasing the stake from its local partners. The filling shows JPMorgan paid 177 million yuan ($26.5 million) for the deal which was closed on October 23.
Reports and speculations about the deal started making rounds starting from September. This latest deal takes JPMorgan a step closer towards full ownership of the securities business in China even at a time when tensions between United States and China are still high.
The deal has also made JPMorgan the first foreign bank to possess such high ownership stake in a mainland Chinese securities joint venture.
A regulatory filing made on the Shanghai United Assets and Equity Exchange indicates the stake was put up for sale by government owned Shanghai Waigaoqiao FTZ.
The filling shows JPMorgan was the only candidate with priority rights in the securities joint venture which could increase its ownership since the remaining four shareholders had surrendered their voting rights to acquire the 20% stake.