HSBC frontrunner to buy Nedbank

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Hong Kong - HSBC Holdings has emerged as the frontrunner to buy a controlling stake in Nedbank Group [JSE:NED], South Africa's fourth-largest bank, in a deal that could be announced as early as Monday, the Financial Times quoted people familiar with the talks as saying.

HSBC, Europe's biggest lender, was set to pip its emerging markets rival Standard Chartered to the post in the race for what could be the last big South African bank that regulators allow a foreigner to buy, the Financial Times reported on Saturday.

HSBC frontrunner to buy Nedbank
Aug 22 2010 09:36
Reuters
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A HSBC spokesperson declined to comment on the report on Sunday.

In July, a media report said HSBC may bid for Nedbank, a potential $4.4bn that would give HSBC bigger profile in fast-growing Africa. HSBC had appointed investment bank Lazard to advise on the possible takeover, Sky News said.

Nedbank's is controlled by Anglo-South African insurer Old Mutual [JSE:OML], which is undergoing a strategic overhaul to slim down its complicated structure.

The sprawling financial conglomerate sold its US life insurance business earlier this month for $350m but its chief executive Julian Roberts declined to comment on whether the restructuring will also include a sale of Old Mutual's flagship asset, its majority stake in Nedbank.

http://www.fin24.com/Companies/HSBC-frontrunner-to-buy-Nedbank-20100822

Is this a good thing? Should Standard Charter have won the bid instead?
 
They can be as excellent as they want to be..

THe only reason Nedbank interests them is the super profits SA banks seem to make.

Look at ABSA, bought by Barclays and NOTHING has changed.. they still rape their customers.
 
nothing like another round of bank consolidation to bring us closer to the end.
 
I have banked with both. Not sure which one is the bigger loser. lol.
 
Looks like it's a happening thing
Old Mutual confirms HSBC bid for control of Nedbank
HSBC will buy up to 70 percent of Nedbank , in a potential $6.8 billion deal that would give Europe's largest lender a presence in Africa's largest economy and a gateway to the fast-growing continent.

HSBC and Anglo-South African insurer Old Mutual , which owns a controlling stake in Nedbank, said in separate statements on Monday they were in exclusive talks about the deal.
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They talked to the SARB/NT and indications are that noises out of there have been positive. They are aiming to have it tied up by year end.
 
Seeing as though OM is listed in London and JSE, where is their Head Office?

What I'm really asking is where that R 40-odd Billion will flow to?
 
Last edited:
sox63 said:
Seeing as though OM is listed in London and JSE, where is their Head Office?

What I'm really asking is where that R 15 Billion will flow to?
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OM's head office is in Pinelands, but moving to Joberg.

I dunno where the money will flow to either, it's not OM itself that owns the whole stake.
It's pension funds etc managed by OM that hold a lot of of NED.

Theres also Old mutual bank an a few other things to consider.
 
alf101 said:
OM's head office is in Pinelands, but moving to Joberg.

I dunno where the money will flow to either, it's not OM itself that owns the whole stake.
It's pension funds etc managed by OM that hold a lot of of NED.

Theres also Old mutual bank an a few other things to consider.
Click to expand...

Well for me, it seems like this SHOULD flow to SA. Another FDI deal is always welcomed, IMO. :D

But sadly, with one major bank in foreign control (ABSA) and one other with very large foreign ownership (Standard Bank), OM/HSBC/Nedbank better have their ducks in a row for the regulators...
 
sox63 said:
Well for me, it seems like this SHOULD flow to SA. Another FDI deal is always welcomed, IMO. :D

But sadly, with one major bank in foreign control (ABSA) and one other with very large foreign ownership (Standard Bank), OM/HSBC/Nedbank better have their ducks in a row for the regulators...
Click to expand...

The most interesting part is that in an article a month ago, it was rumoured that if OM don't sell their Nedbank stake then HSBC would buy Old Mutual.
 
DreamKing said:
but they don't give you in details how HSBC operates.... :D
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According to their website, they are headquartered in London. If anyone knows where the HQ for HSBC is, its them

http://www.hsbc.com/1/2/newsroom/news/2010/announcement-nedbank

Note to editors:

HSBC Holdings plc
HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide from around 8,000 offices in 87 countries and territories in Europe, the Asia-Pacific region, North America, Latin America and the Middle East. With assets of US$2,418 billion at 30 June 2010, HSBC is one of the world's largest banking and financial services organisations. HSBC is marketed worldwide as 'the world's local bank'.
Click to expand...
 
alf101 said:
OM's head office is in Pinelands, but moving to Joberg.

I dunno where the money will flow to either, it's not OM itself that owns the whole stake.
It's pension funds etc managed by OM that hold a lot of of NED.

Theres also Old mutual bank an a few other things to consider.
Click to expand...

It seems the money wont be coming to SA.

The South African Reserve bank would need to give approval for the location of the funds from the deal, with analysts expecting no actual rand inflows if the proceeds are kept offshore as is likely to be the case.
Click to expand...

http://www.reuters.com/article/idUSLDE67M0AB20100823

So, screw OM, I hope the regulators torpedo this deal...
 
zippy said:
According to their website, they are headquartered in London. If anyone knows where the HQ for HSBC is, its them

http://www.hsbc.com/1/2/newsroom/news/2010/announcement-nedbank
Click to expand...

their "headquarter" is in London => yes
but the "head office" (major operation") is in Hong Kong. OK? (Believe it or not, please don't keep arguing)

PS: By the way, HSBC already planned to combine London headquarter and Hong Kong head office. Maybe the next two years time, HSBC will be "officially" a Hong Kong Company.
.
 
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