CTBC Financial Holding Co. said that they have agreed to buy Tokyo Star Bank Ltd. The deal was tagged at JPY52 billion or US$520 million. The deal is said to be the first takeover by a foreign bank on a Japanese commercial lender. CTBC, also known as Chinatrust, said that they will buy the controlling stakes from the company shareholders, which includes Shinsei Bank Ltd., Lone Star Funds, and Credit Agricole SA. The takeover is subject for approval from Japan and Taiwan's financial regulators.
Sources close to the deal said that the decision was reached via a meeting held in Tokyo. Earlier talks between the two companies stalled as Tokyo Star Bank raised profit, along with Japan bank stocks shooting up, of which encouraged shareholder's expectation for a higher offer. Sources are saying that the acquisition of the Taiwanese lender will definitely increase Tokyo Star's capital funding along with its assets.
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