Capitec closes R3.56bn Mercantile Bank takeover | Fin24
 
In partnership with
  • Deloitte

    The accounting firm has denied allegations of corruption related to Eskom contracts.

  • SAA Uncertainty

    What you need to know if you have a ticket or intend to buy one.

  • Michael Jordaan

    Forget Matric results - here's how to prepare your kids for jobs that don't yet exist.

Loading...

Capitec closes R3.56bn Mercantile Bank takeover

Nov 07 2019 17:06

Capitec said on Thursday it has made a final payment for the R3.56bn acquisition of Mercantile Bank. The deal will help it branch out into business banking. 

Capitec, which has grown into the country's largest bank by clients,  made an offer for Mercantile in August 2018.

"The sale was finalised and Capitec paid R3.56bn for Mercantile. 7 November was the first official day that Mercantile became part of Capitec," the bank said in a statement.

Mercantile’s core business offer is banking for established small to medium sized enterprises and entrepreneurs. It is therefore well positioned to align with Capitec Bank’s business banking strategy, it said.

"For now, the two banks will be run independently with retail clients served in Capitec branches and business banking clients referred to Mercantile." 

Capitec's business strategy is focused on offering affordable banking, and the institution said Mercantile business is aligned with its strategy.

Mercantile was sold by its shareholder, Caixa, a Portuguese bank, which divesting from its non-core operations outside of Portugal as part of its recapitalisation plan.

The deal received approval from the Competition Commission, the South African Reserve Bank and the Minister of Finance. 

Compiled by Sibongile Khumalo

capitec  |  business transaction
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Voting Booth

How concerned are you about ransomware attacks?

Previous results · Suggest a vote

Loading...