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.