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Business & Strategy: Capital Market

Standard Chartered was well positioned to expand after the opening of the Suez Canal and telegraph lines to China. It helped finance development in South Africa and the diamond and gold industries. Both banks survived World War I and II but were affected by independence movements in Asia and Africa in the 1950s and 1960s. In 1969, Standard Bank and Chartered Bank merged to counterbalance their networks and expand in Europe and the US while continuing growth in Asia and Africa. After defeating a hostile takeover bid in 1986, Standard Chartered began divesting assets in the US and South Africa and selling off loans that were in default.

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18 views

Business & Strategy: Capital Market

Standard Chartered was well positioned to expand after the opening of the Suez Canal and telegraph lines to China. It helped finance development in South Africa and the diamond and gold industries. Both banks survived World War I and II but were affected by independence movements in Asia and Africa in the 1950s and 1960s. In 1969, Standard Bank and Chartered Bank merged to counterbalance their networks and expand in Europe and the US while continuing growth in Asia and Africa. After defeating a hostile takeover bid in 1986, Standard Chartered began divesting assets in the US and South Africa and selling off loans that were in default.

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uttamsudhir
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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With the opening of the Suez Canal in 1869 and the extension of the telegraph to China in 1871, Chartered

was well placed to expand and develop its business.

In South Africa, Standard, having established a considerable number of branches, was prominent in financing the development of the diamond fields of Kimberley from 1867 and later extended its network further north to the new town of Johannesburg when gold was discovered there in 1885. Half the output of the second largest gold field in the world passed through The Standard Bank on its way to London.

Both banks at that time still quite separate companies survived the First World War and the Depression, but were directly affected by the wider conflict of the Second World War in terms of loss of business and closure of branches. There were also longer term effects for both banks as countries in Asia and Africa gained their independence in the 50s and 60s.

Each had acquired other small banks along the way and spread their networks further. In 1969, the banks decided to merge, and to counterbalance their existing network by expanding in Europe and the United States, while continuing their expansion in their traditional markets in Asia and Africa. All appeared to be going well, when in 1986 Lloyds Bank of the United Kingdom made a hostile takeover bid for the Group.

After having defeated the bid, Standard Chartered entered a period of change. It made provisions against Third World debt exposure and loans to corporations and entrepreneurs who could not meet their commitments. It also began a series of divestments notably in the United States and South Africa, and entered into a number of asset sales.

Business & Strategy Listed on both the London Stock Exchange and the Hong Kong Stock Exchange,Standard Chartered PLC is consistently ranked in the top 25 FTSE 100 companies by market capitalization. By combining its global capabilities with deep local knowledge, the bank develops innovative products and services to meet the diverse and ever-changing needs of

Capital Market

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