UK banking giant Barclays is looking at combining the majority of its operations in Africa with its subsidiary Absa Group, in line with its strategy to operate as 'One Bank' across the continent.
The proposed deal would involve the combination of Barclayss interests in Botswana, Ghana, Kenya, Tanzania, Uganda, Zambia and the Indian Ocean with Absa, Barclays Bank PLC will remain as the majority shareholder of the combined African operations.
"This proposed combination of the majority of the Barclays Africa businesses with Absa is the next logical step in delivering our 'One Africa' strategy, which Barclays PLC announced last year. We have already consolidated the regional offices for Absa Africa and Barclays Africa, as well as introduced a global product strategy for banking across the continent. This proposed combination of the businesses will mirror the managerial and operational structure we have already put in place," said Maria Ramos, the Chief Executive of Absa Group and Barclays Africa.
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The proposed tie-up will be subject to the approval of the boards of Barclays and Absa as well as shareholder and regulatory approval. The listings of Barclays subsidiaries in Kenya and in Botswana will be maintained.
Ramos added: "We are tremendously excited by the opportunities for growth in Africa. We are wholeheartedly committed to our businesses across Africa and this proposed combination will help us to leverage the significant potential of these businesses. It will provide a platform for further growth that we firmly believe will be to the benefit of our colleagues, our customers and clients, our shareholders and the communities in which we operate."
Barclays said that "there can be no certainty that these discussions will lead to a combination". However, if it goes ahead, the proposed combination would not be expected to be completed until 2013.
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