/ 27 July 2005

Absa and Barclays: ‘Today is the day’

British bank Barclays has completed a deal in which it has acquired 53,96% of all ordinary shares in Absa.

In a joint statement on Wednesday, Absa chief executive Steve Booysen said the banks will now start combining their resources and skills.

”Today is the day that we begin to combine our resources and skills to create the pre-eminent bank on the African continent,” Booysen said.

The deal, worth nearly R30-billion, is the largest foreign direct investment in South African history.

The chief executive of Barclays International Retail and Commercial Banking, David Roberts, said the deal is historic ”not just for South Africa and its citizens, but also for Barclays”.

”Absa is a valuable addition to the Barclays group, bringing significant scale and expertise in the South African market, which we look forward to combining with our existing African presence,” he said.

The deal was given the go-ahead by the Johannesburg High Court earlier in July after a challenge by human rights group Jubilee South Africa.

Barclays, Britain’s third-largest bank, launched its takeover bid in early May.

Absa also announced its new executive committee team on Wednesday.

It said the team comprises 17 members, compared with the previously nine. With the introduction of two women to the team, Absa now has an employment equity ratio of 29%.

Booysen remains chief executive. Jacques Schindehtte will be the executive director in charge of finance, legal services and economic research.

Dominic Bruynseels, the CEO of Barclays Africa and Middle East, will be an Absa group executive director, while Louis von Zeuner will be in charge of personal banking.

The three executive directors in the personal banking cluster — Alfie Naidoo, Venete Klein and Zarina Bassa — will report to Von Zeuner.

Robert Emslie will be in charge of business banking and James Slabbert will be the head of group strategy.

Other appointments to the executive include Peter Mageza as the executive director in charge of Absa Africa, and Israel Skosana to head up marketing and communication.

A director will be appointed by Barclays in due course to head up the risk division of Absa.

”This leadership structure provides the balance of executive accountability and oversight which Absa needs to deliver the benefits of the Barclays transaction and to move it to a new level of performance,” Booysen said. — Sapa