TOKYO -- Japan's Mitsui Sumitomo Insurance will take a nearly 40% stake in a life insurance unit of a state-owned Chinese bank, returning to a major growth market that is opening up to foreign businesses.
Mitsui Sumitomo, part of MS&AD Insurance Group Holdings, will spend more than 70 billion yen ($631 million) to buy into BoCommLife Insurance, an arm of Bank of Communications. The Japanese company has agreed to purchase the 37.5% stake the Commonwealth Bank of Australia holds in BoCommLife through a subsidiary. It will seek approval from Chinese financial authorities. Bank of Communications holds the remaining 62.5% interest.
