Bank of China has signed a long-term strategic investment and business cooperation agreement with La Compagnie Financière Edmond de Rothschild (LCFR) to acquire a 20% stake in LCFR. This is the first strategic investment by a leading Chinese bank in a Eurozone bank.

BOC will acquire a 20% stake in LCFR for €236.3 million (RMB 2.3 Billion) through the acquisition of existing shares (approximately 10% of LCFR’s capital) combined with the subscription of newly issued shares. Benjamin de Rothschild will retain 74.19% of the capital of this family business, BOC holding 20% and the remaining stake being held by the management team and employees. BOC will be entitled to appoint two representatives to LCFR’s Supervisory Board. Completion of the investment is conditional on the parties obtaining the relevant regulatory approvals.

The cooperation agreement will focus on product development, structuring and distribution, technology and knowledge transfer, and personnel exchange. Both partners will cooperate in business areas including asset management and private banking.

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