HSBC enters international business negotiations with Nedbank
UK firm aims to buy controlling stake in Nedbank
HSBC has entered into exclusive international business negotiations with Old Mutual in its bid to buy a controlling stake in South Africa's fourth largest bank.
The UK banking giant is looking to purchase a 70 per cent share in Nedbank from insurer Old Mutual, which currently holds a 52 per cent stake in the South African firm.
Nedbank is linked with banks in 30 countries across the continent and is currently valued at around £4.5 billion.
In order to complete the deal, HSBC will need to overcome several regulatory obstacles.
The South African government may look to block the takeover following a spate of takeovers by foreign owners, while the movement of foreign currency is strictly monitored in the country.
However, HSBC already has a small presence in South Africa which may help convince the South African authorities to agree to the move.
Standard Chartered were previously linked with a move for Nedbank.