StanChart Completes Acquisition of Absa’s South African Custody & Trustee Business

Standard Chartered has completed its acquisition of Absa’s South African Custody & Trustee Business.

Following the announcement of the deal in April this year, the two banks have worked together to ensure a smooth transfer of clients and staff into Standard Chartered’s existing Securities Services division in South Africa. On conclusion of this acquisition, Standard Chartered will have one of the largest securities and trustee businesses in South Africa – adding additional capacity to the Bank’s regional footprint of Securities Services, covering 14 other markets on the continent.

This transaction builds on the investment Standard Chartered continues to commit to its Africa strategy, which includes the initial acquisition of Barclays’ Africa Custody Business in 2010 and a further investment of $100 million to expand the Bank’s regional branch network by 100 outlets over 3 years. Earlier this year, the Bank’s Johannesburg Branch also extended its reach to South African-based companies by opening two more corporate offices in Cape Town and Durban.

Peter Sun, Standard Chartered’s regional head of Transaction Banking for Africa, commented: “This acquisition is in line with our objective to be a serious player when it comes to Securities Services – not only in South Africa, but across the continent. We have the knowledge, the footprint and the skills to outpace the competition and facilitate valuable investment into Africa’s growing economies.”

Ebenezer Essoka, CEO for South Africa and Area General Manager of Southern Africa added, “Africa is where the action is, and this is another building block in our strategic ambitions for the continent. Following this transaction, our Johannesburg Branch will be home to more than 400 talented individuals – more than doubling our staff compliment over the last 4 years.”

The Bank’s Africa Securities and Trustee Services business has grown by 150% over the last three years. Uganda is another market, which has benefited from the Bank’s focused approach, following the recent launch of trustee services. This regional growth compliments the group’s international securities strategy, which covers 32 countries across Africa, Asia and the Middle East. Standard Chartered is also establishing a full on-shore presence in Angola. In February this year, the bank had signed an agreement to form a joint venture with Angolan state-owned insurance company ENSA. These expansion plans are subject to final approvals.