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Absa to sell asset management unit to Sanlam?


Absa to sell asset management unit to Sanlam?
By Banele Ginindza
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JOHANNESBURG - A DEAL by South Africa s banking conglomerate Absa to offload its Asset Management Unit to Sanlam hinted at this week could create a R900 billion mammoth to chafe the heels of the Public Investment Corporation.
There were no confirmations of the deal by either parties this week but analysis pondered whether the offering would also include the lucrative Money Market Fund.
Absa had by the end of last year about R270 billion under the management of its Asset Management wing.
Absa is reported to be mulling the decision, citing risk to its business due to clients belief its investments “held the same degree of safety as cash in a savings account”. ....

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Absa in talks with Sanlam and Patrice Motsepe's ARC investments about selling its asset-management unit


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. ....

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