Industrial and Commercial Bank of China (ICBC) announced yesterday that it had paid 4.68 billion patacas ($590 million) to buy a 79.93-percent stake of Seng Heng Bank in Macao.

Seng Heng Bank is Macao's third largest commercial bank in terms of total assets. It has nine branches in the special administrative region and provides a variety of financial services including corporate and personal finance.

Statistics showed by the end of 2006, the Macao lender's assets totaled 25.39 billion patacas.

The deal is still waiting for approval from the ICBC shareholders' meeting, China Banking Regulatory Commission and the Monetary Authority of Macao, according to an ICBC official.

The official said ICBC would strengthen risk management of the Macao-based lender and run the bank in strict accordance with both mainland's and Macao's laws to make contributions to local economic development.

ICBC has 16,807 outlets in the Chinese mainland and 98 overseas branches and offices. It also has 1,326 agent banks around the world.

ICBC's acquisition of Seng Heng Bank would extend the mainland lender's business in the region and help it establish a leading position in the local market, said experts.