T. Rowe Price Sizing Up China Deal
BALTIMORE (
) --
T. Rowe Price
(TROW) - Get Report
is in advanced talks to buy a stake in China Asset Management, China's biggest asset management firm,
Reuters
reports.
T. Rowe Price has been in talks with
Citic Securities
, the owner of China Asset Management, for months and completed its due diligence,
Reuters
reports, citing two sources with direct knowledge of the deal.
Citic, the biggest listed brokerage in China, has been told by regulators to sell a 51% stake in China Asset Management, one of the sources said, in a deal that could be worth more than 9 billion yuan ($1.32 billion).
Citic said over the weekend it would sell part of its holdings in China Asset Management to bring it in line with regulatory requirements, as it seeks licenses in areas such as margin trading and short-selling,
Reuters
reports.
It wasn't clear,
Reuters
notes, how big a stake T. Rowe Price may buy or what other buyers may be in talks with Citic.
Foreigners can own a maximum of 49% of a Chinese fund house.
-- Written by Joseph Woelfel in New York.
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