Asia Bizz: Banking Giant HSBC All Set To Buy Majority Stake Of NedBank South Africa
British banking giant, HSBC has started discussions with its financial group Old Mutual Plc, on the bid to buy the majority of the stake of NedBank Group Ltd. of South Africa. The deal kept forward by HSBC to takeover Nedbank is $6.8 billion. The Old Mutual Plc officials have stated that they are eying to purchase 70% stake of Nedbank, which is now the fourth largest bank in South Africa.
The takeover proposition has also resulted to the rise in share prices of Old Mutual, as the prices were up by 4.9%. On the other hand they have also stated that the proposal of the takeover, if it has been agreed by the regulators and the officials, will be a major step in the banking business by HSBC and Old Mutual.
One of the most important reasons why Old Mutual and HSBC have thought of such a takeover, is that one they are looking ahead in strengthening the financial bonds with South Africa and taking a strong step direct foreign investments by HSBC.