HSBC eyes controlling stake in South African bank Nedbank

HSBC is in discussions with Old Mutual over acquiring a 70% stake in South African bank Nedbank.

Old Mutual has entered period of exclusivity with HSBC and has had preliminary discussions with the South African regulatory authorities about the merits of the transaction. The proposal follows a detailed review by Old Mutual, with potential proceeds from the sale partially reinvested in South Africa and in various emerging markets via Old Mutual SA, as well as a "meaningful" reduction in existing group debt. Nedbank is South Africa's fourth largest banking group by total assets. "There can be no certainty that these discussions will lead to a transaction. Whether or not successf...