South Africa regulator HSBC decision unlikely this year
CAPE TOWN, (Reuters)
HSBC, Europe's biggest bank, has yet to submit a formal application to buy up to a 70 percent stake in South Africa's fourth-largest lender, Errol Kruger, South Africa's Registrar of Banks and head of banking supervision told Reuters.
"A decision is unlikely before the end of the year," he said.
"We haven't yet received a formal application yet. They (HSBC) need to submit a request to the board after their due diligence, probably about eight to ten weeks from last week," he added.
HSBC said last week it is in exclusive talks with Nedbank's parent company, Old Mutual OML.L OMLJ.J, about buying a controlling stake in the bank.
Analysts have said that regulatory approval is likely to be the biggest hurdle for the proposed deal, citing concern that regulators might not want another local bank to fall under foreign control.
Regulators are also likely keen to keep any proceeds from the deal at home, analysts have said.
South Africa's Treasury said in a statement last week it already considered Nedbank as "effectively owned" by a UK-based company, referring to Old Mutual, and potentially signalling it may not block the deal.
Standard Bank SBKJ.J, South Africa's largest lender, is 20 percent owned by Industrial and Commercial Bank of China 1398.HK 601398.SS. Absa Group ASAJ.J, the country's largest retail lender, is majority owned by Britian's Barclays BARC.L.
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