China's securities regulator has approved a restructuring plan by Shenzhen Development Bank, allowing the mid-sized Chinese lender to merge with the banking unit of Ping An Insurance (Group) Co Ltd .
The decision by the China Securities Regulatory Commission late on Thursday would also enable Ping An, world's second-biggest life insurer by market capitialisation, to boost its stake in Shenzhen Development Bank to 52 percent from around 30 percent currently.
Under the restructuring plan unveiled last September, Ping An would obtain control of Shenzhen Development Bank via cash and sales of its 91 percent stake in its banking arm, Ping An Bank Co Ltd. The deal is worth 29.1 billion yuan ($4.3 billion).
Ping An, which aims to become a financial conglomerate, is already Shenzhen Bank's biggest shareholder, with a 29.99 percent stake, most of which was acquired last year from U.S. buyout giant TPG and through a private share placement.
Â
