Summary
1) Why is one of the world's largest bank by market capitalization, Industrial and Commercial Bank of China (ICBC), interested in buying ACL, one of Thailand's smallest bank? 2) Bangkok Bank has been trying to 'unload' its 19% stake in ACL since 2007. It seems that this time the price is right. 3) Will Thailand's Ministry of Finance agrees to this? The Thai government owns nearly 31% of ACL.
Analysis
ICBC's interest in ACL is based on growing 'trade-ties' between China and Thailand. No Chinese bank would be able/ allowed to gain market share in Thailand by buying into the largest financial institutions like Bangkok Bank, KBank, Siam Commercial Bank etc...
So if you are a Chinese bank, what do you do? You get yourself into that market by buying a small bank that nobody, locally, wants. For local Thai banks there are almost no synergies with ACL. Bangkok Bank got 'stuck' with ACL after the Asian financial crisis in 2008. Government enticed 'buy-out'.
If the deals goes through, Bangkok Bank will be the winner out of this transaction. ICBC, like most Chinese banks that have been agressively acquiring financial institutions outside of China, has nothing to gain here.
