The sale is part of Barclays plan to scale down its African operations in order to focus on its core markets in Britain and United States. The London-based bank aims to reduce the steep capital requirements demanded by UK regulators to cover for its African businesses.
A few days ago, Barclays began finalizing plans to reduce its stake in Johannesburg-listed Barclays Africa Group (BAG) from 50.1 percent to 28 percent in a $2.1 billion deal. The British lender had already sold a 12.2 percent stake in BAG for about $880 million in May, 2016.
According to Barclays, the sale of BBZ will result in all 700 employees, 25 retail branches, and five corporate service centres becoming a part of the FMB Group. “I am pleased to say following today’s announcement, all of the operating businesses put into Barclays Non-Core are now either under new ownership or soon will be,” said Harry Harrison, Head of Barclays’ Non-Core. “We remain focused on closing Barclays Non-Core on June 30th, as part of the Group strategy to create a stronger, simpler Barclays. Barclays Bank Zimbabwe has an excellent reputation and I am confident FMB will continue to build on it.”
The price of the deal was not announced although Barclays said the transaction would remove £292 million in risk-weighted assets from its balance sheet. The deal, which is still subject to regulatory approvals, is expected to be completed in the third quarter of this year. (Financial Nigeria)
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