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China's CCB buys majority stake in LME ring dealer Metdist

China Construction Bank Corp (CCB) logo is pictured at its headquarters in Beijing, China, March 31, 2016. REUTERS/Kim Kyung-Hoon
China Construction Bank Corp (CCB) logo is pictured at its headquarters in Beijing, China, March 31, 2016. REUTERS/Kim Kyung-Hoon

By Eric Onstad

LONDON (Reuters) - China Construction Bank finalised a deal on Wednesday to buy a majority stake in Britain's Metdist Trading Limited, becoming the second Chinese company to gain access the London Metal Exchange (LME) trading floor.

CCB International, a subsidiary of China Construction Bank, completed its purchase of a 75 percent stake in Metdist, it said in a statement without detailing the cost of the purchase.

The metals trader will be renamed CCBI Metdist Global Commodities (UK), the LME said in a separate statement.

"Looking forward, CCBI will leverage its deep connection with the Chinese banking and business communities," the Chinese bank said.

Metdist, founded by Metdist Chairman Lord Raj Bagri 45 years ago, is among the nine top-tier LME members with access to the exchange's open-outcry trading floor. Other members are restricted to trading on the LME's electronic platform or by telephone.

CCBI joins GF Financial Markets, part of GF Securities , one of China's largest brokerages, on the LME floor.

Bank of China International , China Merchants Securities and Industrial and Commercial Bank of China , which has a majority stake in Standard Bank (SBKJ.J), are so-called Category 2 traders without access to the trading pit.

LME, the world's oldest and largest market for industrial metals trading, has sought to lure more Chinese business since it was bought by Hong Kong Exchanges and Clearing in 2012.

China is the largest consumer of many commodities and accounts for nearly half of global copper demand.

(Editing by David Goodman)