Absa finally received the regulatory approval it’s been waiting for. The banking group announced earlier today that the R18.3 billion deal will now go ahead at the end of the month.
The deal means Barclays relinquishes its African operations to Absa, notes IOL
. In return, Barclays get a “62.3% shareholding” in Absa, SA’s “third largest lender.
Currently Barclays hold 55.5% in the banking group, says MoneyWeb
“Banking regulators in nine countries” have approved the deal, says Fin24
. Countries include Botswana and Kenya “where Barclays has local listings”.
Due to political strife, Zimbabwe and Egypt are not included in the transaction.
Barclays Africa Group is Absa's new name come the start of August
From 2 August, Barclays Africa Group is the name for the new entity. It “will be listed on the JSE under that name,” notes MoneyWeb
Despite the name change, Absa will remain the name in South Africa. In the rest of Africa “the bank will be branded Barclays,” notes BDLive
The Absa name remains unchanged here because of the associated “strong brand”, says MoneyWeb
. Equally so, Barclays is a “strong brand on the continent,” so the group are “playing to its brand strengths”.
Absa CEO Maria Ramos says the deal means “we can accelerate Africa’s true global potential by supporting the development of capital markets and providing a greater range of financial services on the continent," reports BDLive
The new entity will employ a third of Barclays Group employees and “contribute almost 15% of the bottom line to the Barclays Group,” notes MoneyWeb
If you hold shares in Absa, don’t worry when you can’t find the listing at the start of August. Make sure you look for Barclays Africa from then on.