HSBC runs the rule over potential Nedbank deal
HSBC is mulling the strategic sense of making a bid for South Africa’s Nedbank, majority owned by insurance group Old Mutual, it emerged yesterday.
HSBC has appointed investment bank Lazard to advise on a possible takeover, Sky News reported. The emerging markets-focused group is likely to have to stump up several billions of pounds to buy out Old Mutual’s 54 per cent stake in Nedbank, the fourth largest bank in South Africa.
However, it is thought Old Mutual would be reluctant to come to the negotiating table. Nedbank is a strong generator of profits, while Old Mutual has already expressed a desire to offload parts of its business elsewhere in the world. The group said earlier this year that JP Morgan had been appointed to oversee a sale of its US life insurance arm.
HSBC and Old Mutual both declined to comment.