Bank of China buys 20% of Rothschild French unit


Bank of China struck a deal with the historic Rothschild banking family on Thursday to buy a stake in La Compagnie Financiere Edmond de Rothschild, further highlighting China’s financial power.

Bank of China is paying 2.3 billion yuan ($336.5 million) for a 20% stake in the firm, which is a private banking and asset management business of the Rothschild family. Benjamin de Rothschild will hold 75% of the business. The transaction is the latest sign of the growing financial power of China and other emerging economies. Banks in China, Singapore and Dubai have bought holdings in companies such as Morgan Stanley, Barclays and Citigroup.

China Development Bank, the lender for Chinese policy initiatives, bought a 3.1% stake in British bank Barclays last year. The deal, which requires regulatory approval, will help LCF Edmond de Rothschild expand overseas and the two sides said they would focus on private banking and asset management businesses in China, France and other strategically important regions. According to the company’s website, LCF Edmond de Rothschild made a net profit of €105 million in 2007.

The Rothschild banking dynasty began when Mayer Amschel Rothschild started a business in Frankfurt in the late 18th century. His sons set up Rothschild banks throughout Europe in cities including Paris, Vienna, Naples and London. They financed the Duke of Wellington’s victory over Napoleon at Waterloo and the British move for financial control of the Suez Canal. The Rothschild international banking group is one of the few European merchant banks to have remained independent in the face of sector consolidation. (Reuters)


European e-commerce soars during pandemic - study Analysis

European e-commerce soars during pandemic - study

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.