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HSBC close to a deal for controlling stake in South African bank

HSBC is set to win the auction for a controlling stake in Nedbank, South Africa’s fourth-largest lender.

The Financial Times reports that HSBC said on Monday that it was in talks with Old Mutual to buy its 52% stake in Nedbank.

According to the newspaper, HSBC is looking to obtain a 70% stake in Nedbank.

It has been reported that another UK-based emerging markets-focused bank, Standard Chartered, has also competed for a shareholding in Nedbank but that HSBC offered a higher price.

Nedbank has a partnership with Ecobank, a Togo-based lender with a presence in 29 African countries.

The deal is also said to be facing a number of regulatory obstacles, including approval from the South African Reserve Bank for Old Mutual to take its proceeds from the sale out of the country.

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