Absa Group is to acquire Societe Generale’s custody, trustee and derivatives clearing services operated in Johannesburg.
According to Soc Gen, Asba agreed to acquire the related activities conducted by Societe Generale’s in South Africa, notably its client portfolio, IT systems and all the employees dedicated to these activities.
The transaction is subject to the approvals of the relevant authorities, which are anticipated to be obtained by 2019.
Meanwhile, the securities lending and borrowing services are not part of the transaction and will be terminated by end of March 2019.
Maria Ramos, Absa Group CEO, commented: “For Absa, the acquisition supports our growth strategy in Africa. The transaction allows Absa to re-establish a firm foothold in the custody and trustee services market and provides us with the opportunity to expand our offer to corporate clients in South Africa.”
She added: “Our strategic intent is, in time, to provide these services across markets where we have a presence.”
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