Competition Tribunal approves African Bank to acquire 100% Grindrod Bank
African Bank’s move to buy Grindrod Bank has been approved and the financial institution has confirmed the latest business transaction. African Bank says it has achieved all the approvals to acquire 100% of Grindrod Bank and the banker released a statement to the media. The company, African Bank, confirmed that all the conditions precedent to
Competition Tribunal approves African Bank to acquire 100% Grindrod Bank
African Bank’s move to buy Grindrod Bank has been approved and the financial institution has confirmed the latest business transaction.
African Bank says it has achieved all the approvals to acquire 100% of Grindrod Bank and the banker released a statement to the media.
The company, African Bank, confirmed that all the conditions precedent to the Grindrod Bank transaction have been met, and all the necessary regulatory approvals were obtained on October 6, 2022.
Local media publications report that the acquisition was launched in May this year and it was reported that the deal to acquire Grindrod Bank was valued at R1.5-billion.
The main aim of the merger and acquisition was to accelerate African Banks’ entry into the South African business-banking sector.
African Bank CEO Kennedy Bungane said the acquisition is an important step and commended the Compeititon Tribunal for its efforts.
“This is an important step in the process of final incorporation and we commend the Commission and the Tribunal for their hard work and swift decisions,” he said.
The Tribunal’s certificate stated that after reviewing all relevant information and the recommendation of the Competition Commission, the acquisition has been approved in terms of Section 16(2) of the Act.
Giving an explanation behind the merger, Grindrod Bank CEO David Polkinghorne said that while it was true that Grindrod Bank currently focused on the higher end of the market, it had never in the past been afraid to diversify, such as, for example, a few years back when it had 10 million Sassa customers.
“The merger meant that Grindrod Bank and African Bank were aiming to grow into the same market, just from opposite ends of the market,” he said.
IOL and BusinessTech report that Polkinghome said the “merger also made sense from Grindrod Bank’s perspectives – it holds some R12 billion in deposits and R9bn in loans – in that its parent Grindrod needed to focus on its freight and transport corridor operations.”
Main Image: African Bank/African Executive
