A ruling by South African regulators on UK-based bank HSBC's (LON:HSBA) offer to buy up to 70% in local bank Nedbank (JNB:NED) is not likely before the end of 2010, Errol Kruger, head of South African bank regulation, told Reuters on Wednesday.
HSBC said on 23 August 2010 it was in exclusive talks with Old Mutual (LON:OML) over a potential deal to take a majority stake in Nedbank, subject to regulatory clearance.
Kruger told Reuters that HSBC still needed to make a formal request for approval, after it completed due diligence on the deal, in several weeks.
Analysts cited by Reuters said there were concerns that regulators may not look favourably on a foreign bank taking control of yet another local lender.
However, the country's treasury said last week it was viewing Nedbank as already owned by a UK company, namely Old Mutual, hinting it may potentially let the deal happen, Reuters reported.
Reuters cited on 23 August 2010 analysts at Rand Merchant Bank and Keefe, Bruyette & Woods (NYSE:KBW) as saying an up to 70% stake in Nedbank may be worth up to USD8.4bn (EUR6.61bn), at a premium of some 30%.
Country: South Africa;
Sector: Banking/Financial Services
Target: Nedbank Group Limited
Buyer: HSBC Holdings Plc
Vendor: Old Mutual plc
Deal size in USD: 8.4bn
Type: Corporate acquisition
Status: Exclusivity
Comment: South African regulators don't expect to rule on deal this year
((Comments on this story may be sent to tww.feedback@m2.com))
