HSBC eyes on USD 6.8B stake in South Africa Nedbank
Posted on 23. Aug, 2010 by admin in Business
UK-based HSBC Holdings PLC confirmed that it is holding talks with financial group Old Mutual PLC to buy and own major stakes in South African Nedbank Group Ltd; the deal is worth $6.8 billion.
The Old Mutual said that the discussions are on for sale of about 70 per cent stake in the Nedbank. Nedbank is the fourth-largest bank in South Africa as regards total assets.
According to Old Mutual PLC Should the proposed sale get approved by shareholders and regulators it will be a huge step so they can simplify their business. The sale proceeds, Old Mutual said, will be utilized to trim down the debts and use for making fresh investments in the South Africa.
The sale will be synergy and will be a FDI by the HSBC in the banking sector and bolsters the South Africa’s finance sector. Besides it helps Old Mutual PLC to invest in the savings (long-term)sector.
