THURSDAY, 11.00AM:
SOUTH Africa’s largest financial institution Old Mutual said on Wednesday it has acquired Capel-Cure Myers Capital Management, one of the largest private-client stockbrokers in the United Kingdom.
The deal, for an undisclosed sum, significantly boosts Old Mutual’s offshore strength, more doubling its assets under management outside Africa to R83-billion. Analysts speculate the deal is worth somewhere between R280-million and R480-million.
Old Mutual MD Garth Griffin said the acquisition is an important part of the group’s restructuring of its international retail investment serevices. He added that Old Mutual Asset Management will not be merged with Capel-Cure Myers, which will retain its identity even though it will operate as part of Old Mutual International.
Said Griffin: “Although there are no plans to merge the businesses, we will take advantage of possible operational synergies, and we will be looking at joint marketing initiatives and opportunities for the advanced product set.”
The move was not unexpected by analysts, who had speculated such a move ahead of Old Mutual’s planned demutualisation and listing.