FBC clears CTC hurdle

LIVINGSTONE MARUFU

Listed financial services provider, FBC Holdings Limited, has cleared the final  regulatory hurdle after it received  the approval of  the Competition Tariffs Commission (CTC),paving the way  for the lender to finalise  the acquisition  of rival Standard Chartered Bank Zimbabwe Limited (Stanchart),  Business Times can reveal.

John Mushayavanhu, CEO of FBC Holdings, disclosed this to Business Times yesterday.

He said that the acquisition will lead to the development of a more expansive and diverse banking portfolio with a combined asset base and geographic reach that will make it more resilient and competitive in the face of industry-wide obstacles like digitalization and regulatory compliance.

“We have already received  CTC approvals therefore we are  good to go in terms of completing the acquisition. As we speak, we have all approvals required to complete the deal,” Mushayavanhu said.

This week on Tuesday, the Reserve Bank of Zimbabwe (RBZ) also  gave the deal its blessing.

This approval coincides with  that of the CTC.

“The Bank wishes to advise the banking public that the Registrar of Banking Institutions approved FBC Holdings Limited’s acquisition of 100% shareholding (significant interest) in Standard Chartered Bank Zimbabwe Limited which also results in FBC Holdings Limited taking control of Standard Chartered Bank Zimbabwe Limited as defined in terms of the Banking Act [Chapter 24:20],” RBZ said, in a statement on Tuesday.

“The Bank also advises the public that approval has been granted by the Registrar of Banking Institutions for FBC Holdings Limited to be registered as a controlling company for Standard Chartered Bank Zimbabwe Limited.”

FBC acquired 100% of the shareholding in Stanchart and, by extension, the custodial services business that is wholly owned by Stanchart.

British based Standard Chartered PLC (SCP), the former parent company of Stanchart,  declared in April 2022 that it would completely sell off its operations in Angola, Cameroon, Gambia, Jordan, Lebanon, Sierra Leone, and Zimbabwe due to rising costs in those markets.

The divestment in Zimbabwe occurred as a result of expenses related to a volatile currency, which created an inflationary environment.