South Africa’s largest financial services groups, Standard Bank has sold a stake of its London business for $690 million. The stake which was sold $75 million less than the initial price agreed upon, led its shares lower.

Standard Bank Group Ltd had initially agreed to sell 60 percent of its London-based Standard Bank Plc international markets business for approximately $765 million to the Industrial and Commercial Bank of China (ICBC). Under the agreement, ICBC will acquire 60 percent of the Group’s UK subsidiary and the primary legal entity used by this business, and its other international operations.

This stake in the Global Markets business which includes commodities, fixed income, currencies, credit and equities products, and operations in New York, Dubai, Singapore, Shanghai, Hong Kong and Tokyo has suffered setbacks after the sale. According to a report by Reuters, its shares were down 1.4 percent at 152.39 rand at 0830GMT. The stock initially fell to as much as 151.50 rand.

In may 2014, base metals trade activities in China were distorted by the Qingdao Effect, following allegations about multi-pledging of metals at the port. The financial group however said in a statement on Monday it retains the right to any recoveries from that exposure.

This transaction awards the ICBC an opportunity to positively impact  not only in the Standard Bank Plc, but in the financial centre of Europe, being London.