HSBC Proposes To Aquire 70% of Nedbank Group

HSBC look to aquire 70% share in Old Mutuals Nedbank Group

In a press release earlier today Old Mutual Plc, announced that majority owned South African banking Subsidiary, Nedbank Group Limited, has received a proposal from HSBC Holdings Plc to acquire a 70% controlling interest in the South African banking Group.

An initial assessment from the Nedbank Group (NED)reveals that they consider HSBC to be an excellent international banking partner that would enhance the groups ability to strengthen their position in South Africa and other African Markets.

Old Mutual have granted HSBC Holdings a period of exclusivity in order that the company may carry out due diligence and inter alia of Nedbank Group as well as a few other regulatory approval processes.

Nedbank Group have advised share holders to proceed with caution when dealing with group securities whilst this process continues, this is due to the likelihood of the announcement having a material effect on the value of NED securities.

If the proposal proceeds with approval from the South African Reserve Bank (SARB), the registrar of Banks and the Finance Minister, then the transaction and specifically the transfer of £1.5 billion to Old Mutual would be managed in such a manner as not to effect the South African Currency markets.