HSBC scraps talks over Nedbank purchase
Global banking giant HSBC announced on Friday that it had scrapped talks with British insurer Old Mutual over the purchase of a majority holding in South Africa's Nedbank.
"HSBC Holdings plc announces that discussions with Old Mutual plc about the possible acquisition of a majority stake in Nedbank Group Limited have not been successfully concluded and have ended," HSBC said in a brief statement.
"Notwithstanding this, HSBC remains committed to the South African market and to growing its business in South Africa."
A company spokesman added that the Nedbank purchase was not in line with its strategy.
"It didn't meet our acquisition criteria," he told AFP, but refused to elaborate further on why the deal collapsed.
Shortly beforehand, Old Mutual had released a separate statement which also revealed the news.
"Old Mutual plc has been informed today that HSBC will not proceed with a partial offer for Nedbank following the expiry of the agreed exclusivity period," the insurance company said.
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