Barclays-Absa complete takeover deal

JOHANNESBURG – Barclays and the largest South African retail bank group Absa yesterday announced the completion of a historic deal in which British bank acquired a 53,96 per cent stake for a record 30 billion rand.

“Today is the day that we begin to combine our resources and skills to create the pre-eminent bank on the African continent, bringing value to customers and shareholders alike,” Absa group chief executive Steve Booysen said in a statement. “At a cost of nearly 30 billion rand this is the largest foreign direct investment in South Africa and represents a historic deal,” the statement said.The announcement did not affect early trading yesterday on the Johannesburg Stock Exchange however with the Absa scrip hovering a little over 93 rand in the morning against Tuesday’s close of 92,99 rand.David Roberts, Barclays director and chief executive of Barclays International Retail and Commercial Banking, said: “Absa is a valuable addition to the Barclays group, bringing significant scale and expertise in the South African market, which we look forward to combining with our existing African presence.”Absa also announced a new executive committee team, “which draws on the best skills and talents from both Barclays and Absa,” and comprises 17 members against nine earlier, including two women.Booysen, who remained the group’s chief executive, said: “This leadership structure provides the balance of executive accountability and oversight which Absa needs to deliver the benefits of the Barclays transaction and to move it to a new level of performance.”Barclays, which left South Africa in 1986 under pressure from anti-apartheid activists, launched its takeover bid on May 9, offering 33 billion rands for a 60 per cent stake in Absa.Barclays is Britain’s third largest bank while Absa is South Africa’s fourth-biggest bank in terms of assets – after Nedbank, Standard Bank and the First Rand group – with 31 000 employees, some seven million customers and more than 700 branches.The joint statement said the two banks would over the coming weeks distribute schoolbags and calculators to 32 000 pupils from South Africa’s poorest areas “to mark the completion of the deal and to demonstrate the Barclays and Absa commitment to communities.”-Nampa-AFP”At a cost of nearly 30 billion rand this is the largest foreign direct investment in South Africa and represents a historic deal,” the statement said.The announcement did not affect early trading yesterday on the Johannesburg Stock Exchange however with the Absa scrip hovering a little over 93 rand in the morning against Tuesday’s close of 92,99 rand.David Roberts, Barclays director and chief executive of Barclays International Retail and Commercial Banking, said: “Absa is a valuable addition to the Barclays group, bringing significant scale and expertise in the South African market, which we look forward to combining with our existing African presence.”Absa also announced a new executive committee team, “which draws on the best skills and talents from both Barclays and Absa,” and comprises 17 members against nine earlier, including two women.Booysen, who remained the group’s chief executive, said: “This leadership structure provides the balance of executive accountability and oversight which Absa needs to deliver the benefits of the Barclays transaction and to move it to a new level of performance.”Barclays, which left South Africa in 1986 under pressure from anti-apartheid activists, launched its takeover bid on May 9, offering 33 billion rands for a 60 per cent stake in Absa.Barclays is Britain’s third largest bank while Absa is South Africa’s fourth-biggest bank in terms of assets – after Nedbank, Standard Bank and the First Rand group – with 31 000 employees, some seven million customers and more than 700 branches.The joint statement said the two banks would over the coming weeks distribute schoolbags and calculators to 32 000 pupils from South Africa’s poorest areas “to mark the completion of the deal and to demonstrate the Barclays and Absa commitment to communities.”-Nampa-AFP