Photo: Elvira Wood
Absa Group is in talks to sell part or all of its asset-management business to Africa’s largest insurer, a deal that could create a firm with more than R900 billion in assets, according to people familiar with the matter.
South Africa’s third-largest lender is in discussions with both Sanlam and partner African Rainbow Capital Investments about a deal, said the people, who asked not to be named because the discussions are private. No decision has been reached and an agreement may not be concluded, they said.
A combination of the Absa business with the Sanlam-owned equivalent would become one of the country’s largest money managers, behind the state-owned Public Investment Corporation. The negotiating parties see room for further growth as the sector is otherwise populated with a number of small players, the people said.