Taiwan Bank To Buy American Continental, Eyes Further U.S. Expansion Amid Military Tension With Beijing

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Taiwan’s Taichung Commercial Bank said on Friday it has agreed to buy California-based American Continental Bank for about $82 million as part of an effort to expand into the US market.

American Continental Bank primarily serves Chinese-American communities in the City of Industry and surrounding communities in Los Angeles, Orange, Riverside, and San Bernardino Counties. It has branches in the City of Industry, Alhambra, Chino Hills and Arcadia in California as well as Bellevue, Washington. The bank also has loan production offices in Fremont, California and Carrollton, Texas.

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“We are excited to enter the Los Angeles, Washington and Texas markets and intend to open new branches in the United States,” President David Zia said in a statement.

Taichung Commercial Bank’s move comes amid heightened military tensions between mainland China and Taiwan this year. Taiwan is home to many of the world’s largest technology companies, and Washington has encouraged Taiwan’s chip industry to invest in the US; Semiconductor wafers maker GlobalWafers this year announced plans to build a $5 billion facility in Texas, and MediaTek, which competes with Qualcomm, Purdue will open a design center at the university. Taiwan Semiconductor Manufacturing, one of the world’s largest chip makers, is already building a facility in Arizona.

According to Investopedia, there are currently more than 70 Asian American or Pacific Islander American-owned banks in the US. East West Bank leads the way; Taiwan-based CTCB is included in the bank group. Far East National, then backed by Taiwanese bank Sinopak, was acquired by LA-based Cathay General in 2017.

The history of Taichung Business Bank dates back to the 1950s when it started as a savings cooperative. After the end of nearly four decades of martial law in 1987, it took advantage of banking industry liberalization in the 1990s, expanding north from its base in the central Taiwan city of Taichung to the thriving market of Taiwan’s largest city and main business Taipei. center to. Today, shares of Taichung Business Bank trade on the Taiwan Stock Exchange with a market capitalization of approximately $2 billion.

Taiwan has 22 of the world’sRa largest economy. Taiwanese businesses ranked on the Forbes Global 2000 list of the world’s top publicly traded companies include Hon Hai Precision – a major supplier to Apple led by billionaire Terry Gou, and Taiwan Semiconductor Manufacturing, or TSMC, which is a subsidiary of Intel. Manufactures computer chips for Taiwan’s many Apple suppliers include Pegatron, Light-on Technology, Inventec, Catcher Technology, Largan Precision and Compaq Manufacturing.

Taiwan this week finalized plans to end its current three-day mandatory quarantine rule for all international arrivals starting October 13 (related post here).

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@rflannerychina

Credit: www.forbes.com /

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