FBC to wrap up StanChat acquisition by mid-year
FBC Holdings (FBCH) Limited expects to complete the acquisition of 100 percent shareholding in Standard Chartered Bank Zimbabwe Limited in the second half of the year as it has received most of the necessary regulatory approvals and is working towards fulfilling conditions precedent to the acquisition.
The Reserve Bank of Zimbabwe (RBZ) Registrar of Banking Institutions approved the transaction.
In April of 2022, Standard Chartered PLC announced its decision to divest from several markets including Zimbabwe.
Consequently, Standard Chartered Bank Zimbabwe (SCBZ) Limited was put up for sale.
It is against this background and in line with FBCH’s strategy of continuously growing the business organically and through mergers and acquisitions if opportunities arise that FBCH board in a meeting held in June 2022 resolved to submit a bid for the acquisition of SCBZ.
A rigorous bidding process ensued, culminating in the group’s binding offer being accepted by the shareholders of SCBZ and the subsequent execution of the sale and purchase agreement.
In a brief update, FBC noted that it anticipates a seamless integration of operations and reporting in the second half of 2024.
In the meantime, Standard Chartered Zimbabwe will operate as a semi-autonomous business.
“During the period under review, the shareholders of FBC Holdings Limited approved the acquisition of Standard Chartered Bank’s operations in Zimbabwe,” FBCH group chairman, Mr Hebert Nkala noted in the group in its abridged audited results for the year ended December 31, 2023.
“The Group has subsequently received most of the necessary regulatory approvals and is working towards fulfilling conditions precedent to the acquisition. The complete takeover of the business is expected in the second half of the year.”
According to FBCH, the benefits of the approved transaction include the creation of a larger, diversified banking portfolio with a combined asset base, customer base and geographical reach that is more resilient and competitive in the face of industry wide challenges such as regulatory compliance and digitisation.
Benefits also include leveraging the two banking entities’ respective strengths, capabilities and competences to create dynamic banking operations, allowing the merged entity to enhance its loan underwriting capacity and enabling the group to serve a broader range of customers across different market segments.-chronicle
