REGULATORS have approved Absa Group’s R18.3bn acquisition of Barclays’ African business to create the continent’s largest retail bank by branch networks and customers.

In terms of the deal, which will come into effect on July 31, Barclays will increase its 55.5% stake in Absa to 62.3% through the issue of 129.5-million ordinary shares by Absa. Maria Ramos, Absa group CEO and Barclays Africa CEO, said Africa was a "core focus area for growth". She added: "Anthony Jenkins, Barclays global CEO, made it clear earlier this year that Africa for Barclays is a key area of growth." She said the bank was in a strong position to consolidate the business, to grow in key areas — including retail banking, corporate and investment banking and the card business.

Barclays Africa will include more than 1,300 outlets and 10,400 ATMs across 10 countries. Absa will change its name to Barclays Africa on August 2. The bank will be branded Barclays in Botswana, Ghana, Kenya, Mauritius, Seychelles, Tanzania, Uganda and Zambia. It will retain the Absa brand in South Africa. The group will be listed on the JSE as Barclays Africa. Barclays Bank Kenya and Barclays Bank Botswana will remain listed on their respective exchanges. Egypt and Zimbabwe were not included in the transaction due to political and economic instability. Speaking about the two countries, Ms Ramos said, "Ideally we would like to run as one portfolio, but we will continue to run them operationally for now."

Source: www.bdlive.co.za