Ping An Insurance, China Unicom ink strategic deal to expend cooperation

SHENZHEN, May 11, 2010 (Xinhua via COMTEX) -- Ping An Insurance (Group) Company (601318.SH; 02318.HK), China's leading insurance company, on Tuesday inked a cooperation agreement with China Unicom (0762.HK; 600050.SH; CHU.NYSE), one the country's telecom majors, on forming a closer strategic partnership.

According to the agreement, both sides vowed to deepen cooperation in fields such as basic telecommunication service, industrial customization, joint research and development, financial and insurance support and joint marketing.

The two companies also agreed to share each other's resources such as connection with customers and market coverage, so as to provide better products and services to the customers.

Ping An Insurance's agreement with China Unicom comes after recent headway for its equity acquisition of Shenzhen Development Bank.

The company said on May 4 that the China Securities Regulatory Commission (CSRC) had approved its plan to issue H-shares in exchange for shares in Shenzhen Development Bank.

The insurer, China's second largest, will issue 299.09 million H-shares to Newbridge Asia AIVIII L.P. in exchange for 520.4 million Shenzhen Development Bank shares held by Newbridge, Ping An said in a statement filed with the Shanghai Stock Exchange.

After the deal, Ping An will have a 30 percent stake in Shenzhen Development Bank and replace Newbridge as the bank's largest shareholder. (Edited by Qiu Jun, [email protected])