Africa’s regulators approve Absa-Barclays transaction, deal clears final hurdle


A press communiqué from Barclays Banks Seychelles writes that the necessary conditions have been fulfilled (or, where appropriate, waived) to conclude the combination of Barclays Africa and Absa, including regulatory approvals in Seychelles, Botswana, Ghana, Kenya, Mauritius, South Africa, Tanzania, Uganda and Zambia.

The approval includes Barclays Bank Seychelles Limited, following regulatory approval for the transaction to go ahead by the Central Bank of Seychelles and other authorities in Seychelles.

Commenting on the development, Absa group chief executive and Barclays chief executive Africa Maria Ramos said: “This is a momentous achievement for Barclays in Africa. The deal marks an extraordinary milestone that sets us firmly on course to become the ‘Go-To’ bank on the continent. It means we can accelerate Africa’s true global potential by supporting the development of capital markets and providing a greater range of financial services on the continent.”

Reflecting the enlarged group’s pan-Africa focus, Absa Group Limited will change its name to Barclays Africa Group Limited on August 2, 2013. The Absa brand will still be used in South Africa while the strong Barclays brand will remain elsewhere, including in Seychelles.

Barclays will hold 62.3% of Barclays Africa Group Limited through the issue of 129.5 million ordinary shares by Absa, representing a value of approximately R18.3 billion.  Barclays Bank Kenya Limited and Barclays Bank Botswana will continue to be listed on their respective stock exchanges.

Barclays Seychelles managing director Rakesh Jha said: “We are excited about the opportunities that this development brings to the growth of our business in the market, particularly the ability for us to offer our clients and customers the best of both Barclays and Absa services and products in Seychelles.”

As previously announced, Egypt and Zimbabwe are not included in this transaction, the communiqué adds, but they will remain an integral part of the African business and Barclays will continue to run them on an operational basis.

Maria Ramos concludes: “We have created one of the leading banking groups in Africa, strengthening our geographic footprint and increasing our growth opportunities on the continent. By capitalising on our heritage and seizing the opportunity in some of the fastest growing economies in the world, we are well positioned to win in Africa.”


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