AMP to pull out of China stake


AMP has scrapped months of talks to buy part of Chinese insurer CPIC, dealing the Australian firm's expansion plans a blow

SYDNEY, Australia -- Australian financial services giant AMP Ltd. has pulled out of a stake it was eyeing in Chinese insurer, CPIC Life Insurance.

AMP chief executive Paul Batchelor, said Thursday AMP had been looking at a potential investment in CPIC for some time.

But the company, which confirmed the talks in August, decided the final proposal, which it said did not meet its investment criteria.

Buying a CPIC stake offered no clear benefit to shareholders, according to AMP's management.

AMP is still looking to expand in "selected new markets," it said in a statement on the failure of the talks.

The company is confident China can be one of them. AMP hopes to maintain links it has made with regulators and officials, it stated.

Overseas expansion now medium- to long-term plan

"The time AMP has spent investigating the Chinese market has been a valuable experience and has confirmed the attractiveness and significant potential of the market," Batchelor said.

"With ascension into the WTO, there is little doubt that a presence in China is desirable for any company with global aspirations," he added.

AMP has been keen to enter China's burgeoning market for years. So the failure of months of talks with CPIC is a serious setback to its near-term ambitions.

The company said it would focus on home growth over the immediate future, with any expansion plans now delayed.

"We will continue to focus on delivering value from our existing businesses, and making measured investments in new geographies for the medium- to long-term," Batchelor said.