Postal Savings Bank of China's (HKG:1658, SHA:601658) talks with Deutsche Bank and its asset management unit DWS have crumbled after the German bank refused China's request to increase its stake in the new joint venture, Reuters reported Tuesday, citing two sources with direct knowledge of the matter.
DWS has spoken with PSBC for five years in an attempt to expand its presence in China's asset management market, the report said, citing the sources.
The German asset manager wanted Deutsche Bank to own 47.5% of the venture, PSBC the other 47.5% and Ares Management the remaining 5%, the report said, citing sources.
It was not apparent why Deutsche Bank did not want to boost its stake, Reuters said.
The disagreement comes after Blackrock and Goldman Sachs teamed up with large Chinese lenders to meet investors' needs, the report said.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
