Part of BMO’s Asia growth strategy to provide wealth management products in China, the acquisition is the maximum permitted for a foreign investor prescribed by the Chinese government.
BMO Financial Group’s Private Client Group and Chairman of BMO China president and CEO Gilles Ouellette said BMO can leverage its North American wealth management and capital markets experience to assist COFCO Trust in developing its wealth management offering.
"COFCO Trust provides us with a leading entry point and greater flexibility to offer a wider variety of wealth management products directly or through third parties," Ouellette said.
Additional terms of the deal were not disclosed, however, the deal is subject to approval from the China Banking Regulatory Commission and the Office of the Superintendent of Financial Institutions of Canada, as well as to other customary closing conditions.
As at 31 December 2011, COFCO Trust owned RMB36bn ($5.7bn) assets under management. It was established in 2009, under the supervision of the China Banking Regulatory Commission.
BMO already has a subsidiary bank in China — Bank of Montreal (China), which has branches in Beijing, Guangzhou and Shanghai.
