Mercantile scraps BEE deal, shares drop

Johannesburg - Shares in Mercantile Bank Holdings [JSE:MTL] opened down 4.55% to 21c on Wednesday after the bank said late on Tuesday it called off talks with black investors.

The bank said it terminated current talks with black economic empowerment (BEE) partners due to international market conditions.

"Mercantile remains committed to empowerment at shareholder level and will continue to explore appropriate opportunities based on conducive market circumstances, the bank said in a statement on Tuesday, after the market closed.