HSBC eyes multi-billion dollar African acquisition

HSBC is close to buying South Africa's fourth-largest bank, Nedbank, for at least $6.5 billion.

HSBC is in discussions with Old Mutual to acquire a controlling interest in Nedbank Group, a transaction that could have a value in excess of $6.5 billion.

In March, Old Mutual articulated a strategy to rationalise its portfolio and enhance focus on its core insurance business. Its stake in Nedbank, South Africa’s fourth-largest bank by market value, is part of the non-core portfolio. Old Mutual originated in South Africa in 1845, and is listed on both the London Stock Exchange and the Johannesburg Stock Exchange. It is being advised on the sale by Bank of America Merrill Lynch, Lexicon Partners and Rothschild.

The process adopted is a hybrid between a negotiated sale...

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