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Groups in talks over merger of Barclays Tanzania, NBC

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by nngu007, Aug 24, 2012.

  1. nngu007

    nngu007 JF-Expert Member

    Aug 24, 2012
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    [TD="class: createdate"]Wednesday, 22 August 2012 22:24[/TD]

    NBC bank headquarters in Dar es Salaam. The operations of NBC and Barclays Tanzania could be merged if talks between parent groups become successful. PHOTO | FILE

    By The Citizen Reporter and Agencies

    Dar es Salaam. The National Bank of Commerce (NBC) and Barclays Tanzania could soon become one entity by next year if talks between Barclays group and Absa become successful. The two groups are in talks to combine their African units and complete a plan started seven years ago in a move aimed at accelerating expansion on the continent to catch up with rivals.

    There's no certainty the talks will lead to any deal, which wouldn't be completed until 2013, the banks said in a statement. But if successful the deal could help to reduce operations costs of NBC and Barclays bank, which are currently struggling with inefficiency. Both banks registered losses, after tax, in the second quarter of this year.

    Other countries where the operations of the two banks could be joined together are Botswana, Ghana, Kenya, Uganda and Zambia.

    Barclays acquired a majority stake in South Africa's third-largest bank in 2005 but the two have remained separate entities outside South Africa. This has forced them to run parallel operations in Tanzania. "These are well-run, profitable operations with little overlap with Absa except for Tanzania," said Patrice Rassou, an Absa investor who helps oversee about $41 billion as head of equities at Sanlam Investment Management in Cape Town.

    Analysts have said Absa, which is 56 per cent owned by Barclays, has been slow to take advantage of its parent's wide presence on the continent, trailing fast-moving rival Standard Bank Absa shelved plans to buy Barclays' African assets in 2008 citing price differences. The planned purchase had been part of the original deal when Barclays acquired its Absa stake. Barclays revived the plan in April 2011, aiming to consolidate operations at Absa headquarters in Johannesburg and move other work to Dubai.

    Barclays and Absa had already agreed to work more closely together in their "One Africa" strategy and had set up a joint team of executives. The proposed combination of the businesses will mirror the operational structure already in place, said Maria Ramos, chief executive of Absa and Barclays Africa.

    "It will provide a platform for further growth," she said.

    The two lenders are hoping to grow their retail and corporate franchise across the continent, while growing the investment bank. They have launched financial services in Botswana, Mozambique and Zambia, and are planning to roll out similar products in Kenya.

    Robert Diamond, who resigned as Barclays chief executive officer last month after the lender was fined for manipulating global interest rates, sought to boost the British bank's profit by combining Absa and Barclays's products and customer bases across more than 10 African countries. Together the banks have almost 60,000 staff on the continent.

    The South African bank's shareholders will get "a single entry point into Africa" from a deal, "giving shareholders in both businesses the benefit of African growth," CEO Maria Ramos said in a telephone interview from Johannesburg today.It's not clear how the ownership structure will work or whether Barclays will take a larger stake in Absa, as "there's lots of work to be done and it's very early days," Ramos said.

    The announcement of the potential combination has "nothing to do with Bob leaving last month" and the operational integration has been underway for more than a year, Ramos said, referring to Diamond.Barclays's listed subsidiaries in Kenya and Botswana will be maintained, according to the UK bank. Kenya is Barclays' largest African unit, Ramos said.

    Barclays's pretax profit from Africa, including the bank's holding in Absa, rose 13 percent to 910 million pounds ($1.4 billion) in 2011. The unit contributed 15 per cent of the bank's 5.97 billion-pound pretax profit. Together, Barclays and Absa operate in 12 countries and have over 14 million customers, according to Absa's annual report.
  2. Root

    Root JF-Expert Member

    Aug 24, 2012
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    waichukue tu nadhani foleni itapungua
  3. nngu007

    nngu007 JF-Expert Member

    Aug 24, 2012
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    Was Mr. Mafuru a scrape goat or he did play a part in dismantling NBC through embezzlement and other money mongering business;

    or Barclay Bank CEO Mismanagement caused major loss in BANK history hence for it to survive it will need to MERGE with NBC

    another Management Problem Bank...

    * I can see our National HERO MAFURU will not be back to his POST...
  4. BabuK

    BabuK JF-Expert Member

    Aug 25, 2012
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    The Barclays Bank and the Amalgamated Banks of South Africa (Absa) are now in discussion to combine total African operations.
    According to a statement issued yesterday by Barclays Bank Tanzania corporate affairs manager Tunu Kavishe, the announcement of the talks was made by Barclays through the London Stock Exchange on Tuesday this week.
    Shareholders of the two banks were advised that in line with their strategy to operate as One Bank in Africa they are engaged in discussions about combining the majority of Barclays Africa operations with Absa.
    Barclays, based in London, bought 54 percent shares of Absa in 2005 for $4.5 billion to expand in emerging markets.
    The statement further said that fusion of operations is expected to involve combining Absa and Barclays interests in six African countries.
    The countries are Botswana, Ghana, Kenya, Tanzania, Uganda, Zambia and the western Indian Ocean rim where Absa has a strong presence, with Barclays Bank PLC remaining as the majority shareholder of the combined African operations.
    The statement says that listings of Barclays’ subsidiaries in Kenya on the Nairobi Securities Exchange and in Botswana on the Botswana Stock Exchange would be maintained. Only Barclays’ holdings in listed subsidiaries would be included in the proposed combination, it said.
    The proposed combination would be subject to, among other things, the approval of the boards of Barclays and Absa (the latter on the recommendation of independent members of the Absa Board), as well as Absa shareholder approval and regulatory approvals in the relevant jurisdictions.
    Absa’s majority interest in the National Bank of Commerce (NBC) would be maintained, but Barclays Bank Tanzania and NBC would continue to operate as two separate and independent entities, with separate boards and management teams.
    “There can be no certainty that these discussions will lead to a combination. The proposed combination would not be expected to be completed until 2013,” the statement noted.
    Maria Ramos, chief executive of Absa Group and Barclays Africa, commented on the rationale of the proposed combination saying that the proposed combination of the majority of the Barclays Africa businesses with Absa is the next logical step in delivering our ‘One Africa’ strategy, which Barclays PLC announced last year.
    ‘We have already consolidated the regional offices for Absa Africa and Barclays Africa, as well as introduced a global product strategy for banking across the continent. This proposed combination of the businesses will mirror the managerial and operational structure we have already put in place,” the statement read in part.
    Barclays Plc (BARC) is Britain’s second biggest lender by assets.
    BloombergBusinessweek on Tuesday this week stated that there was no certainty the talks would lead to any deal, which wouldn’t be completed until 2013. According to the news agency, the combination would affect assets in Kenya, Botswana, Zambia, Tanzania and Ghana.
    However, it is not clearly stated how such a decision, if implemented, would affect assets in Tanzania, considering that Absa has 70 per cent shares in NBC.
    The continent has one billion people, faster growth rates than developed nations and as much as 80 percent of the adult population don’t yet have bank accounts.


  5. R.B

    R.B JF-Expert Member

    Aug 26, 2012
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    BARCLAYS Bank Plc has said the ongoing talks with its subsidiary Absa Group of South Africa, on a proposed merger, would not affect the operations of Barclays Tanzania or the National Bank of Commerce (NBC).

    "Barclays Bank of Tanzania and NBC would continue to operate as two separate and independent entities, with separate boards and management teams," a statement issued by Acting Head of Corporate Affairs Tunu Kavishe in Dar es Salaam on Friday said.
    The bank assured shareholders that it was not guaranteed that the discussions would lead to a merger. And even then, the proposal was not expected to be concluded before next year.

    Barclays first opened its doors in Tanzania in 1925 and continued to operate in the country until 1967 when its operations were nationalized to become NBC. It made a comeback in the year 2000. Meanwhile, according to a statement issued by the NBC in Dar es Salaam on Friday, despite tough and aggressive competition and a sluggish economy, the bank believes that there are opportunities in the Tanzanian market that can be leveraged to ensure solid business growth.

    The bank has declared a second quarter loss of 20.2bn/- which equated into a cumulative six months loss of 17.7bn/-, but believes that it can wipe out the losses. The statement also said that the losses in the second quarter can be attributed to two items, namely Corporate Impairment losses amounting to 13.9bn/- and provisions raised for cost and under accruals from 2008 to June 2012 of 13.7bn/-, relating to technical assistance provided by a parent company abroad.

    The statement quoted Acting Managing Director, Marius Alberts as saying that an independent contractor was used to review all balance sheet accounts and close off all items at risk. "These have been accounted for, it is something of the past, and we are looking forward to a very positive six months," he said.
  6. S

    Silicon Valley JF-Expert Member

    Aug 26, 2012
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    attracting topic am coming