CITIC Securities and Crédit Agricole to form global brokerage platform and investment bank

Cooperation aimed to improve leverage of Crédit Agricole CIB activities and client relationships globally and CITICS leadership in China.

Pursuant to the signing of a memorandum of understanding in April 2010 and the subsequent opening of exclusive negotiations, CITIC Securities (“CITICS”) and Crédit Agricole Corporate & Investment Bank (“Crédit Agricole CIB”) announce on Monday the signing of an agreement on certain key terms and the extension of the exclusivity period until June 30, 2011.

The two future partners and the management teams of all involved entities are working towards the creation of a leading global integrated brokerage platform and Asia Pacific investment bank, according to a CITIC Securities report.

The signing of this agreement reflects substantial progress made by the parties in developing a common strategic vision, agreeing on an appropriate transaction structure and laying the foundation for future cooperation principles.

The envisaged transaction structure shall result in both Crédit Agricole CIB and CITICS owning an equal stake in a holding company regrouping CLSA, CA Cheuvreux, the institutional brokerage and investment banking activities of CITICS’s subsidiary CITIC Securities International which is based in Hong Kong, and Crédit Agricole CIB’s Asian Equity Capital Markets and M&A activities.

The parties will use their best efforts to carry on further negotiations on the definitive transaction agreements.
The transaction is subject to corporate and regulatory approvals, as well as consultation or consent of relevant third parties (including employee representatives).