Hong Kong-based Dah Sing Group has agreed to acquire a significant portion of the Macau-based assets of Portugal's Banco Comercial Portugues SA. The deal will include a 100% stake in Macau's third biggest bank, and a large stake of two of the city's leading insurance companies.

Through its lender Dah Sing Bank, the group will acquire all of Banco Comercial de Macau (BCM) and 96% equity interests in BCM’s general and life insurance subsidiaries, Companhia de Seguros de Macau (CSM) and Companhia de Seguros de Macau Vida (CSM Vida), for a total consideration of approximately $214.7 million.

Listed as the third-largest bank in Macau by number of branches, and the eighth-largest by total assets, BCM is primarily engaged in retail and commercial banking. CSM is Macau’s biggest general insurer and CSM Vida is the region’s fifth-biggest life insurer. Dah Sing believes the companies are well positioned to capitalize on Macau’s dynamic growth potential.

Located 65km south of Hong Kong, Macau is a former Portuguese colony that changed to Chinese rule in 1999. The city-state is known for its Las Vegas style casinos. It’s economy grew 8.5% in the first quarter of this year after expanding 28% in 2004.