No job losses in integration deal

By Zhang Fengming  |   2008-6-21  |     NEWSPAPER EDITION

CHINA Merchants Bank Co plans to spend about two to three years to integrate with Wing Lung Bank after agreeing to buy the Hong Kong-based lender for HK$19.3 billion (US$2.5 billion).

CMB will ensure the stability of the management team and professional leaders during the integration, the Shenzhen-based bank said yesterday. CMB promised not to cut Wing Lung staff within the next 18 months.

"Retaining the core talents and keeping Wing Lung's original human resources mechanism within a certain period will maintain stability," it said.

As China's sixth biggest lender, CMB said it needed to extend its network in the Hong Kong market.

The bank set up a team to implement integration on Wing Lung on June 6 after it signed the purchasing deal on May 30.

A focus will be put on assets management services and small and medium-sized loans to allow sharing of client information between the two banks, CMB said.

Wing Lung's all-round financial business including insurance, trust, assets management, futures and securities will also offer CMB a platform to learn more about the comprehensive financial business, CMB said.

The bank said earlier this month that it would pay a combined HK$19.3 billion for 53.12 percent stake of Wing Lung Bank.