Story by Stanley James, Business Editor
ZIMBABWE’S oldest financial institution, Standard Chartered Bank is set to be acquired by a local entity, FBC Holdings Limited subject to approval by the Reserve Bank of Zimbabwe.
The move is being made after the United Kingdom Headquartered bank last year announced plans to divest from a number of markets including Zimbabwe.
In a statement, the foreign owned bank announced that it has entered into an agreement for the acquisition of the London based bank’s businesses in Zimbabwe by the local bank.
A signing ceremony was also held this Thursday where representatives of the entities agreed that the local entity acquires a 100 percent shareholding.
In terms of the agreement, the local bank will continue to employ all Standard Chartered Bank Zimbabwe workers.
The two banks could not reveal the figures of the transaction, pending approvals by regulatory authorities.
Standard Chartered Bank’s Chief Executive Officer for Africa Mr. Sunil Kaushal confirmed the deal in a statement, stating that the sale will be concluded in the next few months.
“The agreement with FBCH for the sale of Standard Chartered’s business in Zimbabwe is in line with the bank’s global strategy, aimed at achieving operational efficiencies, reducing complexity, and driving scale. This strategic decision allows us to redirect resources within the AME region to areas with significant growth potential, ultimately enabling us to better support our clients,” he said.
For FBCH Group Chief Executive Officer, Dr. John Mushayavanhu the acquisition bears testimony of how locally owned banks can sustain the financial industry.
“We are pleased to sign this agreement today and to have been selected by Standard Chartered Bank as the preferred buyer. Standard Chartered is a leading regional and international bank with more than 150 years of experience globally. The bank has been present in Zimbabwe for more than 130 years. Equally, FBCH is a leading financial services group in Zimbabwe and the region, with interests in commercial banking, insurance, re-insurance, micro-finance, stock-broking and mortgage finance. The combined strengths of the two institutions will enable us to better respond to the ever- changing requirements of our clients,” said Dr Mushayavanhu.
Central Bank data shows that domestic banks are even scaling up their business portfolios in Zimbabwe by dominating lending to productive sectors, acquisition of assets.