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FBC Holdings Limited (FBCH) and Standard Chartered have reached an agreement to acquire Standard Chartered’s operations in Zimbabwe, subject to approval by regulators including the Reserve Bank of Zimbabwe.
The announcement was made today by Sunil Kaushal of Standard Chartered Bank and Dr John Mushayavanhu of FBCH at the signing ceremony at the Bank’s headquarters in Harare, Zimbabwe.
According to the agreement, FBCH will acquire 100% equity of Standard Chartered Bank (Zimbabwe) Limited, and then acquire the custody service business wholly owned by Standard Chartered Bank Zimbabwe. As part of the agreement, FBCH will also acquire an economic interest in Africa Enterprise Network Trust, whose principal asset is a 20.7% stake in Mashonaland Holdings. FBCH will continue to employ all Standard Chartered Zimbabwe staff. The two banks will work closely together over the coming months to provide a seamless transition for their customers and staff.
Kaushal, Regional Chief Executive, Africa and Middle East (AME), Standard Chartered, said: “The agreement with FBCH for the sale of Standard Chartered’s operations in Zimbabwe is in line with the bank’s global strategy to achieve operational efficiencies, reduce complexity and achieve greater scale. .This strategic decision allows us to reallocate resources in the AME region to regions with significant growth potential, ultimately allowing us to better support our customers.”
Dr. John Mushayavanhu, Group Chief Executive Officer of FBC Holdings, said that the acquisition enables FBCH to strengthen its banking market share, customer base and market competitiveness in the rapidly changing banking landscape.
Dr Mushayavanhu said: “We are delighted to have signed this agreement today and have been selected as the preferred buyer by Standard Chartered Bank. Standard Chartered Bank is a leading regional and international bank with over 150 years of global experience. The bank has 130 Many years of history. Likewise, FBCH is a leading financial services group in Zimbabwe and the region, involved in commercial banking, insurance, reinsurance, microfinance, stock broking and mortgage financing. The combination of the two institutions will allow us to better respond to the changing needs of customers.
“Standard Chartered customers can look forward to FBCH continuing to provide seamless trade finance and cross-border payments. We welcome Standard Chartered employees to the FBCH Group. Both clients and employees will benefit greatly from working with a leading financial institution such as FBCH. Ultimately, “This acquisition will further enhance shareholder value. The signing of this agreement today is a testament to the strong financial position of the FBC Group and further strengthens its presence in the market. We therefore look forward to working closely with Standard Chartered Bank in the coming months, to achieve a smooth transition and successfully close the transaction.”
“We are now pursuing the necessary regulatory approvals from all necessary regulators,” he added.
In April 2022, Standard Chartered made a strategic decision to divest from various markets including Lebanon, Angola, Cameroon, Gambia, Sierra Leone, Zimbabwe and Jordan, and withdraw from the CPBB (Consumer Private and Business Banking) business in Côte d’Ivoire and Tanzania. The bank announced the sale of its Jordan business in early March this year. –TradeArabia News Service
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