China Construction Bank (CCB) has entered into an agreement with Bank of America to acquire 100% equity interest of Bank of America (Asia) Limited, the wholly-owned subsidiary of Bank of America in Hong Kong.

Payable in cash, the total consideration of the acquisition is HK$9.71 billion, representing approximately 1.32 times of the book net assets of HK$7.38 billion of Bank of America (Asia). The acquisition is subject to the approvals of the Chinese and overseas authorities and CCB shareholders in a general meeting. It is expected that the acquisition will be completed before the end of 2006.

CCB and Bank of America have established a long-term strategic partnership since Bank of America became a strategic investor of CCB in 2005, highlighted by close cooperation in a wide array of areas, including personal banking, risk management, information technology and corporate governance. ( CCB )