Absa acquires Barclays South Africa branch |27 December 2005

According to a Barclays Africa media release, the purchase consideration will be settled in cash.

The acquisition of the barclays South Africa Branch by Absa would not affect the status or ownership structure of the Barclays Africa businesses outside South Africa.

In July this year, Barclays Bank PLC acquired a majority shareholding in Absa. As part of the deal, the two banks have agreed in principle that Absa will acquire all Barclays Africa businesses, subject to regulatory, shareholder and other applicable approvals.

The regulatory approval, which follows Absa’s recent announcement of solid financial results for the six months ended 30 September 2005, clears the way for Absa to acquire Barclays SA branch business as a going concern, and to integrate the business into its growing network.

Absa is set to bring the best of both worlds to its customers and new opportunities to employees by combining the world class corporate and investment banking capabilities of Barclays with Absa’s proven domestic banking expertise, knowledge and experience. The Barclays SA branch business, comprising Barclays Capital South Africa, and the Corporate and Merchant Banking Business, will be combined with relevant business units at Absa with the aim of creating the leading Corporate and Merchant Bank in South Africa.

Says Absa Group chief executive Steve Booysen: “We are all very excited about this development. This transaction is about growth, and as stated from the beginning, combining the strengths of both Absa and Barclays will increase opportunities for staff, and products and services for customers.”

He said the transaction presents an enhanced platform for South African businesses and individuals to access global financial markets.

“By combining Absa’s strong retail presence with Barclays expertise in investment banking, we will ensure that we capitalize on our joint strengths to become the leading bank in South Africa and eventually the pre-eminent bank in Africa.

Furthermore, by operating as a united entity, we ensure market clarity while maximizing our productivity as a business,” says Booysen.

With effect from January 1, 2006, all assets and liabilities, including customers and staff, of Barclays SA branch, will come under the Absa banner.
Barclays Corporate and Merchant Banking unit focuses on promoting the product range of debt originated in South Africa, specialized property and project finance, as well as transactional banking to corporate and business clients.

Barclays Capital South Africa is part of Barclays Capital, the investment banking division of Barclays, and provides a full range of financing, investment and risk management products to its clients.

Barclays International Personal and Premier sales team in South Africa will transfer to Absa Private Bank, a division of Absa Bank. Customer accounts will remain offshore with Barclays Private Clients International Ltd. Customers who require local assistance will be assisted by Absa International & Private Client.