A man walks past a logo of China Construction Bank at the Pudong financial area in Shanghai, China, May 11, 2015. REUTERS/Aly Song NEW YORK (Reuters) - China Construction Bank (CCB) (601939.SS) said on Wednesday it will buy a majority stake in UK metals trading firm Metdist Trading Limited, becoming the second Chinese company to gain access to the 138-year old London Metal Exchange’s trading floor. The news comes after Reuters reported last week that China’s No. 2 lender by assets was in talks to buy Metdist, a Category 1 member of the LME which was founded by Metdist chairman Lord Raj Bagri 45 years ago. In a statement, CCB said it would buy a 75-percent stake in Metdist from Minmetco, which will retain 25 percent, and will rename the firm CCBI Metdist Global Commodities (UK) Ltd. Metdist is one of nine ring-dealer members of the exchange, which gives it access to the LME’s open outcry ring as well as electronic and telephone trading. The deal is part of CCB’s strategy to expand into base metals and global commodities markets, CCB chairman Wang Hongzhang said in the statement. CCB joins a growing list of Chinese entities gaining entry to the LME, which sets global benchmark prices of industrial metals including copper, aluminum and zinc. The only other Chinese member in the LME’s top tier is GF Financial Markets, part of GF Securities (000776.SZ), one of China’s largest brokerages. The LME, the world’s oldest and largest market for industrial metals trading, has sought to lure more Chinese business since it was bought by Hong Kong Exchanges and Clearing (0388.HK) in 2012. China is the largest consumer of many commodities, and accounts for nearly half of global copper demand. Reporting by Josephine Mason; Editing by Christian Plumb
As predicted last week, China Construction Bank has now confirmed it is to buy 75% of London-based metals brokerage, Metdist, which will allow it access to top-tier trading on the London Metal Exchange. The bank joins a growing list of Chinese entities gaining entry to the LME.