LONDON, Aug 9, 2006 (AFP) – Standard Chartered, the Britain-based emerging markets bank, said Wednesday that it has agreed to buy 80.86 percent of Pakistan’s Union Bank for 413 million dollars (321 million euros). “The acquisition of Union Bank will make Standard Chartered the sixth largest bank in Pakistan by market share of assets and will further extend Standard Chartered’s business in a high growth market,” the group said in a statement announcing the deal in London.
The bank, which has all its operations outside Britain and generates the bulk of its profits in Asia, added that it aimed to combine its existing 46 branches in Pakistan with Union Bank’s 65 outlets.
“Union Bank has grown well under its strong management team, and we will drive further growth by adding Standard Chartered’s products and processes as we have done successfully in other markets,” Standard Chartered chief executive Mervyn Davies said in the statement.
The bank said it was financing the purchase through internal resources, adding that the deal would contribute to earnings from 2006.
The price is equivalent to 17.1 times Union Bank’s 2005 reported after-tax earnings, it added.
Standard Chartered was reported last mont