HSBC Holdings is in talks to sell its South African corporate banking unit to FirstRand’s Rand Merchant Bank, people with knowledge of the matter said, as the UK lender sells non-core assets.
A deal has not yet been finalised and there is no guarantee that the transaction will close, said the people, who asked not to be identified discussing private talks. HSBC also has an equities business in South Africa that it plans to sell, the people said. HSBC, FirstRand and Rand Merchant Bank declined to comment.
HSBC’s plan is part of its strategy to shed businesses in many parts of the world and boost investment in Asia.
FirstRand, the continent’s biggest lender by market value, has said it’s open to acquisitions in its home market. Africa’s biggest economy has seen renewed investor interest after the formation of a new government earlier this year.
The Johannesburg-based lender’s shares have risen 15 per cent this year, outpacing the 6.4 per cent gain on the FTSE/JSE Africa All Shares Index.
HSBC has been operating in South Africa since 1995. The company recently sold its retail and business banking units in Mauritius to Absa Group. With the sale of its businesses across South Africa, HSBC would have largely exited sub-Saharan Africa. BLOOMBERG
