Goldman Sachs applies to buy joint venture Chinese bond company: WSJ

Goldman Sachs Group Inc. Its bond is moving to acquire 100% ownership of the joint venture China, Is deepening its investment in the world’s second largest economy after 17 years of partnership with domestic brokerage.

The New York-based bank has been applying with Chinese regulators for full control of Goldman Sachs Cow Hua Securities and has signed an agreement to acquire a 49% stake in the now-owned venture. Presented by the Wall Street Journal.

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Goldman & Goldman Sachs (China), the first global bank to seek full ownership of its bond business in China, wants to be renamed Securities Co. The majority recognized the company’s attempt to take control Beijing based unit.

Goldman Sachs Group Inc. Is moving to acquire 100% ownership of its bond joint venture in China. (Photo by Michael Kovac / Getty Images)

In a memo dated Tuesday, CEO David Solomon, CEO John Waltron and Chief Financial Officer Stephen Sherr said that “one hundred percent of our ownership of the mainland signifies a significant commitment and investment in China.”

Goldman’s Venture with a local broker, Beijing Gao Hua Securities Co., was founded in 2004, with Goldman holding 33% and the Chinese company initially 67%. The joint venture handles the writing of shares and securities, and the merger and acquisition consultancy in China.

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Goldman did not say how much China plans to pay for the remaining shares in the business. The transaction will be completed in 2021, as regulatory approvals may take some time to secure. The company plans a five-year expansion plan for China at the end of last year and plans to double its head count in the country to 600. Click on More WSJ.com