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Barclays Africa and Absa have today announced that their plans to combine the two businesses and create Barclays Africa Group Limited have taken a major step forward.

The necessary conditions have been fulfilled (or, where appropriate, waived) to conclude the combination of Barclays Africa and Absa, including regulatory approvals in Botswana, Ghana, Kenya, Mauritius, Seychelles, South Africa, Tanzania, Uganda and Zambia.

Commenting on the development, Absa Group Chief Executive and Barclays Chief Executive Africa Maria Ramos said: “This is a momentous achievement for Barclays in Africa. The deal marks an extraordinary milestone that sets us firmly on course to become the ‘Go-To’ bank on the continent. It means that we can accelerate Africa’s true global potential by supporting the development of capital markets and providing a greater range of financial services on the continent.”

Reflecting the enlarged group’s pan-Africa focus, Absa Group Limited will change its name to Barclays Africa Group Limited on 2 August 2013. The Absa brand will still be used in South Africa while the strong Barclays brand will remain elsewhere.

Barclays will hold 62.3% of Barclays Africa Group Limited through the issue of 129.5 million ordinary shares by Absa, representing a value of approximately R18.3billion. Barclays Bank Kenya Limited and Barclays Bank Botswana will continue to be listed on their respective stock exchanges.

“As we previously announced, Egypt and Zimbabwe are not included in this transaction but they remain an integral part of our African business and we will continue to run them on an operational basis, Maria Ramos added.

She concludes: “We have created one of the leading banking groups in Africa, strengthening our geographic footprint and increasing our growth opportunities on the continent. By capitalising on our heritage and seizing the opportunity in some of the fastest growing economies in the world, we are well positioned to win in Africa.”

Source: Announcement