Global consultancy Mercer, a subsidiary of New York-based Marsh & McLennan has confirmed that it is acquiring a 34 per cent stake in South African financial services group Alexander Forbes.

Global consultancy Mercer, a subsidiary of New York-based Marsh & McLennan, has confirmed that it is acquiring a 34 per cent stake in South African financial services group Alexander Forbes.

The transaction is conditional upon the listing of Alexander Forbes on the Johannesburg Stock Exchange and other customary closing conditions, including the receipt of requisite regulatory approvals, Mercer said in a statement.

Alex Forbes was delisted in 2007 after it was sold to a private equity consortium led by private equity firm Actis.

Bank of America Merrill Lynch acted as financial advisor, and Webber Wentzel in South Africa and Slaughter and May in the UK acted as legal advisors on the transaction.

“This is the beginning of a strong partnership that will generate value for both of our firms and our respective clients. We are particularly excited to significantly broaden our exposure to the growth prospects present in South Africa and sub-Saharan Africa,” said Julio Portalatin, president and chief executive officer of Mercer.

“Through this investment, we will be able to support our global clients seeking to enter and expand into the African market, and with our global reach and capabilities, we will be able to support Alexander Forbes’ clients seeking to grow outside of Africa,” he added.

Africa is quickly becoming a place to watch in the wealth market, as economic growth continues to prosper and financial services firms emerge across the continent.

For an article explaining why Africa is quickly becoming the new frontier for wealth managers to watch and more importantly, what it takes to do successful business on the continent, click here.