HSBC looks to take majority stake in Old Mutual subsidiary

HSBC is in talks to buy up to 70% of South African bank Nedbank Group, a subsidiary of Old Mutual.

In a stockmarket announcement this morning, HSBC says discussions to acquire a majority stake in the fourth biggest bank in South Africa are ongoing.

The deal could be worth around £4.4 billion given Nedbank’s current market value.

A statement from Old Mutual says a bid has been made by HSBC for up to 70% of the bank.

The statement reads: “Nedbank Group’s initial assessment of the proposed transaction is that HSBC represents an attractive international banking partner and shareholder of reference and has the potential to provide Nedbank Group with benefits which should enhance Nedbank Group’s ability to strengthen its position in the South African banking sector. (article continues below)

“Nedbank Group believes that there is a substantial opportunity for it to expand both within the South African and African markets in due course.”