Cleary Gottlieb represented Bank of America Corporation in connection with its $3 billion investment in China Construction Bank (CCB). CCB is the second largest bank in China, with approximately 14,500 branches. This investment is the single largest foreign investment ever in a Chinese company and the first strategic investment in one of China’s “big four” state-owned banks.
Under the agreements, Bank of America acquired an approximate 9% stake in CCB and was also granted a 5 ½ year option to increase its stake in CCB to 19.9% for an aggregate purchase price of $2.5 billion. In addition, Bank of America committed to invest $500 million in an initial public offering by CCB. The parties also entered into a strategic assistance agreement under which Bank of America will provide strategic advisory and consulting services to CCB in a variety of areas.
Cleary Gottlieb has previously represented Bank of America in a number of matters, including its acquisition of FleetBoston Financial, which was the largest merger of 2003.