Old Mutual has confirmed that it has ended talks with HSBC over the potential acquisition of Nedbank Group.
The news comes at the end of a two month exclusivity deal between the two over HSBC’s £5 billion acquisition of the South African bank.
Old Mutual says the reasons for HSBC’s withdrawal have not been disclosed, but says it is unaware of any adverse findings during HSBC’s due diligence.
Old Mutual says it will evaluate other options concerning its shareholding in Nedbank and that further announcement will be made in due course. (article continues below)
Reports this morning stated that HSBC was close to stepping away from the Nedbank deal after the due diligence on the firm was found to be more complex than initially thought.
The Financial Times says that the news could leave the way clear for HSBC’s banking rival Standard Chartered to acquire the South African bank, having previously been interested. However, Standard Chartered recently announced a £3.3 billion rights issue and stressed the funds were to build up its capital reserves in line with new international regulations.