CTBC buys bank, insurance company

It’s expanding beyond Taiwan.

Taiwan’s CTBC Financial Holding Company has agreed to buy Tokyo Star Bank Ltd and Taiwan Life Insurance Company for a total of US$1.4 billion to diversify and expand outside its crowded home market.

CTBC President Daniel Wu said Taiwan’s fourth-largest financial company by market value will buy 100% of Taiwan Life in a share swap valued at about US$904 million. CTBC will pay US$529 million in cash for 98% of Tokyo Star.

In buying Tokyo Star, CTBC Financial follows competitors in expanding outside a home market where competition has squeezed lending margins to the second-lowest in Asia Pacific. Taiwan Life w