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Johannesburg - The Competition Tribunal will on Wednesday rule on the proposed restructuring of RMB Holdings'(RMB) insurance operations.
RMB Holdings [JSE:RMH] intends to split itself into two separate listed companies. One will house its insurance assets and the other its banking assets.
Through this deal Main Street 796, a subsidiary of RMB Holdings (which will later be named Rand Merchant Insurance Holdings), intends to acquire First Rand STI Limited.
RMB Holdings already has a 61.9% interest in First Rand STI and will increase this interest to 90% if the Tribunal approves the deal.
RMB Holdings operates in the broader financial services industry, including the provision of short and long term insurance services.
First Rand STI also provides short and long term insurance services through subsidiaries such as Outsurance, Momentum STI and Outsurance Life.
On approval, RMB Holdings will transfer its insurance assets to Rand Merchant Insurance and in this way separate its insurance businesses from its banking assets.
The Competition Commission considered the merger and concluded that it would not substantially lessen competition.
It has therefore recommended that the Tribunal approve the merger without conditions.
RMB Holdings [JSE:RMH] intends to split itself into two separate listed companies. One will house its insurance assets and the other its banking assets.
Through this deal Main Street 796, a subsidiary of RMB Holdings (which will later be named Rand Merchant Insurance Holdings), intends to acquire First Rand STI Limited.
RMB Holdings already has a 61.9% interest in First Rand STI and will increase this interest to 90% if the Tribunal approves the deal.
RMB Holdings operates in the broader financial services industry, including the provision of short and long term insurance services.
First Rand STI also provides short and long term insurance services through subsidiaries such as Outsurance, Momentum STI and Outsurance Life.
On approval, RMB Holdings will transfer its insurance assets to Rand Merchant Insurance and in this way separate its insurance businesses from its banking assets.
The Competition Commission considered the merger and concluded that it would not substantially lessen competition.
It has therefore recommended that the Tribunal approve the merger without conditions.
