London based Barclays Bank and its subsidiary Absa Group has agreed to integrate majority of its African operations with Absa, as part of its ‘One Bank in Africa’ strategy to strengthen pan-African financial operations.
The integrated entity will be rebranded as Barclays Africa Group and serve nearly 14.4 million customers through a network of over 1,300 outlets and more than 10,400 ATMs, employing over 43,000 people across ten nations.
As per terms of the deal, the proposed consolidation will be executed through the acquisition of Barclays Africa by Absa Group for £1.3bn.
Following the completion of transaction, Barclays’ stake in Absa will increase from 55.5% to 62.3%.
Barclays chief executive Antony Jenkins said, "This transaction will give us a platform from which we can further grow our Africa business to the benefit of customers, colleagues, shareholders and the communities in which we operate."
The proposed combination, which was initially started by both banks in 2011 to integrate their African businesses, is expected to close in the first six months of 2013, subject to completion of the conditions, including regulatory and shareholder approvals.
The amalgamation will expedite their strategy to boost corporate banking, market activities and bancassurance in Africa.