China Construction Bank (CCB) is in discussions to buy Metdist Trading Ltd., a top-tier trader on the London Metal Exchange, Reuters reported, citing metal industry sources.
Talks have been going for a few months now, and an announcement is likely this month, according to the report.
One source was quoted as saying that the deal may be finalized next week when Chinese President Xi Jinping visits London.
If CCB’s plans succeed, it will join a growing list of Chinese entities gaining entry to the LME, which sets global benchmark prices of industrial metals including copper, aluminum and zinc.
LME, the world’s oldest and largest market for industrial metals trading, has sought to lure more Chinese business since it was bought by Hong Kong Exchanges and Clearing in 2012.
The potential addition of CCB would add liquidity to the LME’s open outcry trading floor.
Metdist Trading is a so-called Category One trader, which would give CCB access to the LME’s open outcry, electronic and telephone trading.
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