UK-listed HSBC has won a takeover battle to enter exclusive talks to buy a controlling stake in Nedbank, South Africa’s fourth-largest bank and parent of a wealth management firm.

“HSBC Holdings plc has entered into exclusive discussions with Old Mutual plc about the possible acquisition of a majority stake in Nedbank Group Limited,” HSBC said in a statement today. “The discussions are ongoing and if successfully concluded would be conditional on, among other matters, obtaining the necessary regulatory approvals,” it said.

A separate statement by Old Mutual said: “The proposed transaction, if and when it proceeds, would be implemented by way of a partial offer to all Nedbank Group shareholders to acquire up to 70 per cent of the Nedbank Group shares.”

Nedbank is the parent bank of South African wealth manager BoE Private Clients and Fairbairn Private Bank, which operates across the UK, the Isle of Man, Jersey and South Africa.

Media reports said that HSBC had been able to beat UK-listed Standard Chartered – which is also a key player in emerging markets – on price. The deal, if it is approved, will give HSBC an important foothold in the African market, adding to its already-strong presence in regions such as Asia.

Last year Nedbank Group reported a profit for the full year of R5,412 million ($713.7 million).