HSBC acquisition of Nedbank unlikely to be approved this year, news report claims

2 September 2010

A decision on the potential acquisition of Nedbank by HSBC is unlikely to have been reached before the end of 2010, a South African banking professional has said.

In an interview with Reuters, Errol Kruger, registrar of banks and head of banking supervision in South Africa, said that a bid for a controlling stake in the South African financial services provider has yet to be drawn up.

HSBC was recently thought to have been in talks with the bank to acquire a 70 per cent stake from insurance firm Old Mutual for almost $7 billion.

Mr Kruger told the news provider: “A decision is unlikely before the end of the year."

"We haven't yet received a formal application yet. They (HSBC) need to submit a request to the board after their due diligence, probably about eight to ten weeks from last week.”

Old Mutual owns a 52 per cent stake in Nedbank and was reported to be in exclusive talks with HSBC over a potential deal.

HSBC is thought to have beaten competition from Standard Chartered to gain exclusivity rights to talks with the insurance firm.

By Jim Ottewill

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