Barclays Africa fails in bid to acquire Barclays Bank Zimbabwe assets

Barclays Africa fails in bid to acquire Barclays Bank Zimbabwe assets

HARARE, December 3 (The Source) – Barclays Africa Group on Thursday said it had failed to reach an agreement with its parent company Barclays Bank Plc for the purchase of its assets in Zimbabwe and Egypt.

The two operations were excluded from a 2013 deal that saw Barclays Africa, formerly ABSA, acquire eight African operations from its parent company because of political uncertainty, although it already manages their operations.

The deal gave Barclays Bank Plc a controlling 62,3 percent stake in the JSE-listed Barclays Africa Group and created Africa’s largest retail bank by branch networks and customers.

Early this year, Barclays Africa chief executive Maria Ramos said they were in ‘tough negotiations’ for the two markets, with Egyptian banks and insurers in particular being highly prized and expensive.

Barclays Bank Plc wholly owns Barclays Bank Egypt and has a 67.7 percent stake in Barclays Bank Zimbabwe.

“Shareholders are referred to the cautionary announcements dated 31 July, 14 September and 27 October 2015 regarding the potential combination of Barclays Bank PLC’s 100 holding in Barclays Bank Egypt SAE and 67.7 percent holding in Barclays Bank of Zimbabwe Limited with Barclays Africa Group,” the bank said in a notice to shareholders Thursday afternoon .

“Shareholders are advised that, following extensive discussions, Barclays Africa Group and Barclays Bank PLC could not agree key commercial terms and have decided not to proceed with the proposed combination,” said the bank.