Absa Group CEO Maria Ramos. Picture: BRETT ELOFF
REGULATORS have approved Absa Group?s acquisition of Barclays? African business, the bank announced on Monday.
In terms of the deal, which will come into effect on July 31, Barclays will hold 62.3% of the newly renamed Barclays Africa through the issue of 129.5-million ordinary shares by Absa, with a value of R18.3bn.
Absa will change its name to Barclays Africa on August 2. The bank will be branded Barclays in the rest of Africa and remain Absa in South Africa.
The deal, first announced in 2012, was delayed by the complexities of regulatory approval in Botswana, Ghana, Kenya, Mauritius, the Seychelles, South Africa, Tanzania, Uganda and Zambia.
"It means that 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," said Absa group CEO and Barclays Africa CEO Maria Ramos.
In a conference call on Monday, Ms Ramos said that Africa, as the second-fastest-growing region globally, offered a great platform for growth.
The group will be listed on the JSE as Barclays Africa.
Barclays Bank Kenya and Barclays Bank Botswana will remain listed on their respective stock exchanges.
Egypt and Zimbabwe are not included in the transaction but the group will continue to run the operations in those countries.