South African banking group FirstRand reiterated on Monday that it will consider any takeover offers from foreign banks but declined to comment on reports that it was in talks with United Kingdom emerging-market specialist banker Standard Chartered.
The Sunday Times Business Times reported this week that Standard Chartered is in serious talks about buying a stake in one of South Africa’s four major banks. It quoted senior bankers as saying that FirstRand’s main operating arm, First National Bank, is likely to be sold — in whole or in part — to the London-based bank.
While the news helped the rand to firm on Monday, neither FirstRand nor Standard Chartered were able to confirm that they were in talks.
Standard Chartered was not immediately available for comment and a spokesperson for FirstRand said: ”We have talked to all the foreign banks and have said we will consider any approach from any foreign bank, because it is incumbent on the bank to look after its shareholders. But we are not able to comment on whether we are in talks with any specific bank.”
Standard Chartered has made no bones about the fact that it is constantly on the lookout for potential acquisitions and that it would like to grow its presence in South Africa.
Standard & Poor’s Ratings Services said on Monday that it has affirmed its ”A” long-term and ”A-1” short-term counterparty credit ratings on Standard Chartered Bank and related entities, including Standard Chartered Bank (Hong Kong).
The rating action followed an announcement earlier on Monday that Korea First Bank’s current owners have accepted a Korean won 3,4-trillion (R19,7-billion) bid from Standard Chartered for 100% of the bank’s share capital. — I-Net Bridge
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