Finance Minister Trevor Manuel and Reserve Bank Governor Tito Mboweni met representatives of banking groups Absa and Barclays plc on Sunday to discuss the bid by the United Kingdom-based group to acquire a stake in Absa.
Barclays has applied for regulatory approval to acquire a majority shareholding, of more than 49% but less than 74%, of Absa and such a transaction requires the consent of the Finance Minister.
“Pursuant to the receipt of the recommendations of the Registrar of Banks and the Competition Commission, the Minister has considered material aspects of the proposed transaction,” the National Treasury said in a statement.
The statement added that the meeting, held on Sunday morning, was exploratory and the outcome non-binding in nature. The discussions included an evaluation of conditions under which such an acquisition may be permitted, taking into account the requirements of the Banks Act, ongoing maintenance of the soundness of the South African financial system and prevailing policy objectives.
“The parties regard these discussions as having afforded an opportunity, without prejudice to the position of the applicant or that of the regulatory authority, to assist the respective boards of Barclays and Absa to give further consideration to the matter,” the National Treasury said.
No decision regarding regulatory approval will be made until such time as the representatives of Absa and Barclays have reverted to the Minister on these matters, it added.
The Minister, in granting such approval, must be satisfied that the proposed acquisition will not be contrary to public interest, as well as the interests of the depositors, bank, and controlling company involved.
— I-Net Bridge