Standard Chartered stock lost 2.5% after announcing the $3.3 billion acquisition of the Korea First Bank. In early London trading the bank’s shares traded at 929 pence.

Standard Chartered makes 65% of its profit in Asia, and the acquisition will raise Korea to the level of Standard’s second-important market after Hong Kong. The Korean bank will amount to 22% of Standard’s assets

The transaction will be financed through the sale of about $1.87 billion worth of stock and values the Korea First Bank at 1.87 times its book value.

"It is a big step towards our aspiration to lead the way in Asia, Africa and the Middle East," said Mervyn Davies, chief executive of Standard Chartered. He described Korea First Bank as a "well managed, conservatively run bank with a highly skilled workforce."

Until the last-minute offer was extended by Standard Chartered, the UK-based HSBC could be expected to snatch Korea First.