HSBC in takeover talks with South Africa’s Nedbank

| August 23, 2010
’HSBC

Banking giant HSBC is in talks with South African insurer Old Mutual about acquiring a majority stake in Nedbank Group – South Africa’s fourth biggest bank.

The media has speculated that the price could be around £4.5 billion for a 52% stake, in the latest in a series of assets Old Mutual has been forced to sell following the financial crisis.

HSBC already has a small presence in South Africa and is said to have fought off competition from Standard Chartered.

However, there is concern that the South African authorities may try to block the deal following a run of acquisitions in the country by foreign banks.

In a statement today, Nedbank said HSBC was an attractive international banking partner.

Earlier this month, HSBC, which is Europe’s largest bank, reported profits more than doubled, exceeding analysts expectations.

The bank reported a pre-tax profit of $11.1 billion (£7 billion) for the six months to the end of June, compared with $5 billion in the same period a year ago.

HSBC is one of the few banks not to receive any taxpayer bailout money after surviving the financial crisis better than many of its rivals.

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