FBC Holdings moves to acquire StanChart

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By Alois Vinga

FBC Holdings Limited (FBCH) has entered into an agreement to acquire Standard Chartered (StanChart) business in Zimbabwe in a development likely to bolster the latter’s market share within and beyond the country’s borders if the regulator approves the transaction.

Last year, StanChart made the strategic decision to divest from a number of markets, namely Lebanon, Angola, Cameroon, Gambia, Sierra Leone, Zimbabwe and Jordan, and to exit the CPBB (Consumer Private and Business Banking) business in Côte d’Ivoire and Tanzania.

The Bank announced sale of its business in Jordan earlier in March this year.

Under the agreement, FBCH will acquire 100% shareholding in StanChart Zimbabwe Limited and by extension, the custodial services business that is wholly owned by Standard Chartered Bank Zimbabwe.

FBCH will also acquire the economic interest in Africa Enterprise Network Trust whose main asset is a 20,7% shareholding in Mashonaland Holdings.

FBCH will continue to employ all of Standard Chartered Bank Zimbabwe’s employees.

The two banks will work closely in the coming months to provide a seamless transition for its clients and staff.

StanChart Africa & the Middle East (AME) CEO, Sunil Kaushal said the agreement is in line with the group’s global strategy.

“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.

FBC Holdings group CEO, John Mushayavanhu said the acquisition enables FBCH to consolidate its banking market share, customer base and market competitiveness in a rapidly changing banking landscape.

He expressed gratitude after signing the agreement upon being selected by Standard Chartered Bank as the preferred buyer, a leading regional and international bank with more than [150] years of experience globally.

“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. Standard Chartered Bank’s clients can expect the continued provision of seamless trade finance and cross-border payments by FBCH.

“We welcome Standard Chartered’s employees to the FBCH group,” he said.

The FBC Holdings CEO said both clients and employees alike will benefit greatly from their association with a leading financial institution such as FBCH with the impending acquisition will further enhance shareholder value.

He said signing the agreement is a milestone achievement and testimony to the FBC group’s strong financial position which further enhances its presence in the market amid an expectation to work closely with StanChart towards achieving a smooth transition and successful completion of the transaction.

“We are now in the process of securing the necessary regulatory approvals from all the requisite regulators,” he added.