South Africa’s Standard Bank has entered into a non-binding memorandum of understanding with Credit Suisse to jointly develop a South African institutional agency stockbroker, to be named Credit Suisse Standard Securities.
The joint venture will incorporate the current institutional agency stock broking business of Standard Bank (currently operating through Andisa Securities), and in addition will have access to and be able to offer its clients, inter alia, Credit Suisse’s global research portfolio and equity distribution platform.
Standard Bank and Credit Suisse plan to cooperate on major equity capital markets transactions in the future.
The equity online share-trading and private client businesses of the Standard Bank group will remain separate from the proposed joint venture but will benefit from the resources and products of the proposed joint venture.
David Munro, deputy chief executive, Standard Bank Corporate and Investment Banking, said: “We are very excited at the opportunity to enter into a joint venture with Credit Suisse, a leading global equity and emerging markets house.
“This will substantially extend the service that we are able to offer our clients in terms of research and distribution.”
Michael Philipp, CEO of Credit Suisse in the Europe, Middle East and Africa region said: “We are very pleased to launch Credit Suisse Standard Securities, which demonstrates our commitment to South Africa. Credit Suisse’s leading global emerging market franchise will be further strengthened by our relationship with Standard Bank and provide a platform for further growth in South Africa.”
Both parties will provide the necessary support to ensure the proposed joint venture realises its growth potential.
The parties to the proposed joint venture are committed to black economic empowerment and will ensure the proposed joint venture’s compliance with the Financial Sector Charter and other legislation relevant to black economic empowerment.
The proposed joint venture will be subject to, inter alia, the approval of all applicable regulatory authorities. — I-Net Bridge