Absa Buys Barclays' South African Business

Stephen Harris

23 December 2005

South African bank Absa has received regulatory approval for its acquisition of Barclays South African branch for an estimated R578 million ($90.5 million), with effect from 1 January 2006. The purchase consideration will be settled in cash. Under the terms of the deal, Barclays International Personal and Premier sales team in South Africa will transfer to Absa Private Bank. Customer accounts will remain offshore with Barclays Private Clients International. Customers who require local assistance will be assisted by Absa International & Private Client. In July this year, Barclays 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.