FBC to buy StanChart Zim

FBC Holdings Limited (FBCH) has won the bid to acquire Standard Chartered Plc’s Zimbabwean unit more than a year after the multinational banking group said it was exiting seven markets including Zimbabwe.

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

As part of the agreement, 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.

In a statement, Sunil Kaushal, Regional Chief Executive Officer, Africa & the Middle East said the agreement with FBCH for the sale of Standard Chartered’s business in Zimbabwe was 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,” Kaushal said.

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

“We are pleased to sign this agreement today and to have been selected by Standard Chartered Bank as the preferred buyer. Standard Chartered is a leading regional and international bank with more than years of experience globally. The bank has been present in Zimbabwe for more than 130 years,” Mushayavanhu said.

He said the combined strengths of the two institutions would enable “us to better respond to the ever-changing requirements of our clients”.

Standard Chartered Plc, last year announced plans to exit Zimbabwe, Angola, Cameroon, The Gambia, Sierra Leone, Lebanon and Jordan as it redirects its resources within the Africa and Middle East region to where it has the greatest scale.

Until the latest developments, Vista Group Holding SA, the Guinea-headquartered financial institution, was shoo-in to acquire StanChart Zimbabwe.

It could not be established why the Simon Tiemtore-chaired group could not complete the acquisition.

However, the group announced Thursday that it had agreed to acquire Société Générale’s banks in Congo Brazzaville and Equatorial Guinea.

The acquisitions represent key progress in the group’s expansion strategy which is to become a pan-African financial services group with operations in 25 countries, Tiemtore said in a statement.