Japanese banking group Sumitomo Mitsui Financial Group is reportedly planning to buy BNP Paribas’ US business BancWest.
Sumitomo Mitsui Financial chairman Masayuki Oku told Bloomberg in an interview that the company would study the offer if BNP is keen to make the move.
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"The US market is a very big market and in retail banking there might some chances to get in — of course we will study them," added Oku.
BNP Paribas, which is expected to be fined US$10 billion by US regulators for alleged violation of US sanctions, is speculated to be planning to exit US operations.
BancWest’s portfolio comprises over 670 branches across 20 US states and reported 2.2 billion in annual revenues for 2013. The company is targeting nearly 6% annual revenue growth through 2016.
Sumitomo Mitsui, meanwhile, is seeking expansion across foreign markets after raising its stake to 9.5% in Bank of East Asia, before agreeing to take up 40% stake in PT Bank Tabungan Pensiunan Nasional for about $1.5 billion.
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By GlobalData"We’re open to proposals in commercial banking that supplement our strategies in expanding our businesses on a global basis, or in Europe in a wider sense, the Middle East or Africa," Oku confirmed.
