HSBC will buy up to 70 per cent of South Africa's Nedbank in a potential $6.8 billion deal that would give Europe's largest lender a presence in Africa's largest economy and a gateway to the fast-growing continent.
HSBC and Anglo-South African insurer Old Mutual, which owns a controlling stake in Nedbank, said in separate statements on Monday they were in exclusive talks about the deal.
Old Mutual said HSBC could acquire up to 70 per cent of South Africa's fourth-largest bank, a deal that could be worth about 49.9 billion rand (some €5.3 billion), given Nedbank's current market value.
Old Mutual is undergoing a strategic overhaul to slim down its complicated structure.
Nedbank said in a statement that HSBC was an attractive international banking partner. Nedbank this month posted flat first-half earnings and said it would struggle to meet its medium-term forecasts, hurt by its money-losing retail unit.
Reuters