The landmark acquisition is the biggest overseas M&A by a Chinese commercial bank and is the biggest foreign investment in Africa. The move comes as the government encourages Chinese companies, especially in the financial sector, to expand into the region. It also represents an effort by Chinese state-owned banks to increase their presence abroad to better serve their clients who are starting to look offshore for business opportunities. ICBC will acquire new shares at R136( US$20.36 ) each, a 29% premium to the closing price on the 22nd of October of R104.58. A strategic cooperation between the two banks will be formed, which include a committee co-chaired by Yang Kaisheng, president of ICBC, and Jacko Maree, chief executive officer of SBG. The acquisition will help it capitalize on the fast-growing South African economy.

As part of the deal, the two banks will look into setting up a US$1 billion global mining resources fund investing in natural resources such as metals, oil and gas. It will also develop specific strategic initiatives and business plans in different areas. The two banks will make use of their extensive branch networks cooperating in corporate banking, trade finance and investment banking. The deal follows ICBC's acquisition of stakes in other foreign banks including in Indonesia and Macau. ICBC reported a 76% jump in net profit to 22.46 billion renminbi ( US$3 billion ) in the third quarter this year. Jiang Jianqing, chairman of ICBC, has indicated the bank expects to increase revenue from overseas operation from the current 3% to 10%. Listed on Johannesburg Stock Exchange and Namibian Stock Exchange, SBG is the largest banking group in South Africa, with total asset of R1,087.9 billion and market capitalization of R144.7 billion. The bank has more than 950 branches operating in 38 countries.