Credit Agricole SA (ACA)’s corporate and investment bank entered exclusive talks with Citic Securities Co., China’s largest broker by market value, to sell the remaining 80.1 percent stake in its CLSA brokerage unit.
Citic Securities (6030), based in Beijing, agreed last June to acquire a 19.9 stake in Credit Agricole’s brokerage units, CLSA and Cheuvreux, for $374 million. France’s third-largest bank is planning to sell all of CLSA to Citic Securities “with the full backing” of the unit’s management, the companies said today in an e-mailed statement. Cheuvreux is no longer part of the transaction with Citic, the companies said.
Last year’s accord between Credit Agricole and Citic stopped short of their original plan to create an investment- banking joint venture in Asia. Credit Agricole and Citic began talks in May 2010.
Plans for Cheuvreux will be announced “at a later stage,” according to the statement. The CLSA talks should lead to an agreement “within a short time frame,” the companies said.
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