The Congress of South African Trade Unions said it is disturbed by the news that Barclays Bank may acquire a major shareholding in Absa. The two banks confirmed on Thursday that they were involved in talks which could see the sale of a 21% stake in Absa to Barclays.
Sanlam has the 21% stake, making it the largest single shareholder.
Cosatu said in a statement on Thursday night it had repeatedly argued that the ownership of South Africa’s financial institutions was already concentrated in the hands of far too few people, who were also still predominantly white and male, and subject to far too little democratic control.
”We have argued for banking to be democratised and used for the benefit of the people. If a major bank like Absa were to fall under the control of a foreign banking conglomerate like Barclays, the situation would be even worse.
”It would make it harder for the government, let alone the people of South Africa, to influence the policies of that bank.”
It would create a serious danger of that bank moving funds and investment out of the country, in pursuit of the biggest profits, with potentially disastrous effects on the level of domestic investment and job creation, Cosatu said.
”We demand that government intervenes to safeguard the interests of the people and ensure that Absa and other banks concentrate their investment strategies on job creation and poverty alleviation and bringing banking to the people.”
In a statement, Barclays confirmed that talks were taking place but warned that the discussions ”may or may not lead to a transaction being agreed” to.
The statement said ”… these discussions have not yet reached a stage which requires a formal approach to the relevant regulators”.
It said the process ”is at an early stage and is subject… to due diligence and securing a satisfactory level of committed acceptances from Absa’s significant shareholders prior to making any offer”.
Sanlam said in a media statement it would consider any offer which would benefit its shareholders.
Finance union Sasbo has welcomed the possibility of a foreign bank buying the shares.
”The 60 000-strong banking union believes it would be beneficial for South Africa and development in the South African Development Community,” Sasbo deputy general secretary Ben Venter said.
Sasbo represents banking officials and other employees in the finance sector. – Sapa