LAGOS – Standard Bank, South Africa’s largest bank by assets, has agreed to pay US$200-US$300 million for a minority stake in Nigeria’s Oceanic Bank, sources close to the deal said on Saturday.
The agreement, which also sees Oceanic taking over Standard’s Nigerian unit Stanbic, ensures that both banks comply with new capital requirements due to come into force in Nigeria on December 31. “Oceanic signed an MoU to acquire Stanbic Nigeria, while Standard Bank has agreed to acquire a minority stake in Oceanic.The deal was signed during the week,” a Oceanic Bank source said.Under the memorandum of understanding (MoU) whose details are still being worked out, Standard Bank will pay US$200-US$300 million dollars for a substantial, but not controlling, minority stake in Oceanic, a second source close to the deal said.Oceanic and Stanbic officials were not immediately available for comment.Nigerian banking has been in the throes of a forced consolidation since the new capital requirement of 25 billion naira was announced last year.-Nampa-Reuters”Oceanic signed an MoU to acquire Stanbic Nigeria, while Standard Bank has agreed to acquire a minority stake in Oceanic.The deal was signed during the week,” a Oceanic Bank source said.Under the memorandum of understanding (MoU) whose details are still being worked out, Standard Bank will pay US$200-US$300 million dollars for a substantial, but not controlling, minority stake in Oceanic, a second source close to the deal said.Oceanic and Stanbic officials were not immediately available for comment.Nigerian banking has been in the throes of a forced consolidation since the new capital requirement of 25 billion naira was announced last year.-Nampa-Reuters
