Nedbank talks fall through

HSBC has walked away from discussions to purchase a 70% stake in South Africa’s Nedbank for an estimated US$8bn.

The UK-based bank entered into exclusive talks with Nedbank’s owner Old Mutual in August.

However, the exclusivity period ended this week, and Old Mutual released a statement confirming that talks had disintegrated.

“Old Mutual is no longer in discussions with HSBC concerning its shareholding in Nedbank. The reasons for HSBC’s withdrawal were not disclosed to Old Mutual, but were not, as far as Old Mutual is aware, related to any adverse findings during HSBC’s due diligence,” Old Mutual notes in a statement.

HSBC were unforthcoming as to the reasons behind stopping talks in their official statement, noting that: “HSBC Holdings announces that discussions with Old Mutual about the possible acquisition of a majority stake in Nedbank Group have not been successfully concluded and have ended.”

HSBC would not offer any more information when contacted by GTR.

Before HSBC entered into exclusive discussions with Nedbank, a string of other institutions were linked to the acquisition, including Standard Chartered, although no other bank has been formally announced yet.

However, Standard Chartered may not be in the best position to make a bid, after the bank announced a US$3.3bn rights issue which it claimed was to reach capital requirements for incoming Basel III regulations.

Old Mutual will evaluate its other options concerning possible Nedbank suitors.