Standard Chartered Bank Taiwan is to acquire the “good bank” portion of Asia Trust and Investment Corporation in Taiwan. The acquisition will increase Standard Chartered’s presence in Taiwan from 88 to 95 branches, after a government auction.

In a statement, Standard Chartered said Asia Trust provides a variety of lending and credit card services to both retail and corporate customers through its seven branches, including two in Greater Taipei.

Under the terms of the transaction, Standard Chartered Bank Taiwan will be able to relocate up to seven additional branches into Taipei.

Jaspal Bindra, chief executive officer, Asia, said: “Taiwan is a key market for Standard Chartered, and core to our Greater China strategy. This acquisition allows us to strengthen our network in Taipei, home to the most affluent bank customers in Taiwan. It also enables us to gain further leverage from our acquisition of Hsinchu International Bank in 2006 which gave us a strong platform in Taiwan.”

Asia Trust has been auctioned by the Taiwan Government’s Central Deposit Insurance Corporation, having been in receivership since January 2008.  Under the terms of the transaction, Standard Chartered Bank Taiwan will assume certain assets, liabilities and operations of Asia Trust and will receive a payment of NT$3.348 billion (around $104 million).  

The transaction, which is subject to certain conditions, including regulatory approvals, is expected to be completed by the end of 2008.