Johannesburg - Absa Group [JSE:ASA] said on Thursday it will buy the
African operations of its parent Barclays for R18.3bn, finalising a longstanding
plan to fuse their businesses on the fast-growing continent.
As a result of the R18.3bn deal, Barclays will raise its
stake in Absa to 62.3% from 55.5% now, giving it an even tighter hold on South
Africa's third-largest bank by value.
The banks said in a joint statement the incorporation of
Barclays African operations would lead to a management shake-up at Absa, which
would be renamed Barclays Africa Group.
The deal covers Barclays' operations in Botswana, Ghana,
Kenya, Mauritius, Seychelles, Tanzania, Uganda and Zambia and the Barclays
Africa Regional Office.
Absa will retain its brand for its retail and card business
in South Africa
The deal should be completed in the first half of next year,
the banks said.