South African based Standard Bank has revealed plans to acquire 100% ownership in financial services firm, Liberty Holdings. Standard Bank is Africa’s largest bank by assets, and the acquisition is expected to expand the bank’s network across the continent.
The top bank already owns 54% of Liberty Holdings but wants to purchase 100% ownership of the company at a price of $729 million.
“We are creating a more united group that will bring our banking, insurance and asset management businesses much closer together to create something really special,” said Standard Bank Group CEO Sim Tshabalala.
Standard Bank is one of the top lenders in the continent. It has subsidiaries in 20 African countries and over 50,000 employees worldwide.
Similarly, Liberty Holdings is among the biggest insurance companies in Africa, with a presence in 12 African nations. The South African company owns 57% stake in Liberty Kenya Holdings and is in the process of acquiring additional shares in the company.
The merger between Standard Bank and Liberty Holdings is subject to approval from shareholders and relevant authorities. According to sources familiar with the matter, the deal is expected to be finalised by the end of the first quarter of 2022.
In a public statement, Standard Bank said, “We expect that the strong alignment of Standard Bank Group and Liberty’s purposes and goals should allow for an accelerated and seamless integration of the businesses.” The two financial institutions will continue to operate as separate entities until their goals and objectives are fully aligned.
