Banking group Absa on Monday moved to allay employees’ fears of retrenchments following discussions with England’s Barclays Bank about them buying a controlling stake in Absa.
”This transaction, if it happens, is about growth and leadership, not retrenchment,” said Absa group executive Steve Booysen in an open letter to staff and customers.
Booysen said discussions with Barclays was at a ”very early” stage and there were several steps to go before an offer was actually made.
He said the transaction would enable Absa to further capitalise on its brand and retail franchise, as well as grow the products and services available to customers.
The transaction will also mean that Absa would gain access to the world class capabilities of Barclays.
Booysen said a deal would enhance both parties’ African operations and the international career opportunities for Absa staff.
”Absa has made it clear that it is very early days and that there is much work still to do — the banking regulator and government must still be formally approached about the potential transaction,” said Booysen.
He said Absa agreed to enter into discussions on the understanding that Barclays recognised the strength of Absa as the largest retail bank in South African and the strength of its brand, and that Barclays’ interest in Absa would be motivated primarily by its attractiveness as a platform for growth. – Sapa