S.Korea’s Hana in Talks to Buy China Shenyang Bank

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<p>South Korea's Hana Bank, the banking arm of Hana Financial Group (086790.KS: Quote, Profile , Research), is in talks to buy part of Shenyang City Commercial Bank based in northeastern China, two banking sources said on Thursday.</p><p>Hana, South Korea's No. 4 banking group, has been locked in negotiations for more than a year with Shenyang Bank, one of China's 100-odd city lenders, over a strategic stake acquisition.</p><p>No deal has been signed, the sources told Reuters.</p><p>"Hana is in talks with the Shenyang bank and two other Chinese banks," said a banking source close to Hana in Seoul. "But Shenyang is Hana's main target."</p><p>The second, Beijing-based banking source told Reuters that Hana was unlikely to gain control of the Shenyang lender, and that the two companies had not finalised financial details.</p><p>A Hana spokesman said he was unaware of the deal. Shenyang Bank was not immediately available for comment.</p><p>On Thursday, Hana said it would spend US$259 million establishing a wholly owned unit in China, focusing on the country's northeast. </p>