China consolidates its Latin American presence

By:
Anuj Gangahar
Published on:

Recent large-scale Chinese acquisitions and consortium agreements in the LatAm financial and energy sectors indicate the People’s Republic’s continuing interest in the region’s resources.

China Construction Bank’s agreement to buy a controlling stake in Brazil’s Banco Industrial e Commercial (BicBanco) for $730 million is a landmark deal in cooperation between the two Bric countries.

It is CCB’s first acquisition in Latin America, giving the Chinese state-owned bank a foothold at a time when Chinese companies from the financial sector and beyond are looking at opportunities to expand into the region.

It is also an encouraging first statement of intent by a state-owned company from China after the much-watched Third Plenum of the Chinese Communist Party’s central committee. The deal is subject to regulatory approval, which is widely expected to be granted.

Third Plenums refer to the third time new leaders of China lead a plenary session of the central committee. They generally take place about a year after a new administration assumes office. Previous Third Plenums...