Another Chinese conglomerate has ambitions of expanding overseas as slowing growth at home drives them to explore the market abroad to bolster profits.
According to Reuters, CITIC Group Corp is in talks to acquire Russell Investments from the London Stock Exchange in a deal estimated to cost $1.8 billion.
The purchase of Russell will give the Chinese firm, particularly its asset management arm, CITIC Asset Management, an access to the U.S. market, Reuters said, citing unnamed sources.
LSE acquired Russell from Northwestern Mutual in 2014 for $2.7 billion. Earlier this year, it tapped JPMorgan Chase to help in selling Russell.
Reuters said it was not clear how the market volatility in China would affect the negotiations.
The Shanghai Composite Index has recently plunged more than 30% from a June 12 peak, and in recent weeks the government has adopted a number of measures to lift share prices and the economy including a quarter-point rate cut, a half-point reduction in the banks’ reserve requirement ratio and liquidity support from the PBOC.
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