July 12, 2013 / 12:09 PM / in 5 years

Scotiabank withdraws bid for stake in Bank of Guangzhou

July 12 (Reuters) - Bank of Nova Scotia said on Friday it has withdrawn its application to acquire a nearly 20 percent stake in Bank of Guangzhou, after Chinese authorities decided against proceeding with the C$719 million ($691.28 million) deal.

Scotiabank, Canada’s No. 3 lender, had warned in May that Chinese authorities were reevaluating whether they wanted to go ahead with the deal that was originally struck back in September 2011.

Bank of Guangzhou is primarily government-owned and is not publicly listed. Guangzhou, with a population of around 13 million, is about 120 km (75 miles) northwest of Hong Kong.

Scotiabank had said recent changes in municipal and federal leadership in China had prompted authorities there to rethink the deal.

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