Mboweni approves Capitec acquisition of Mercantile

Capitec's acquisition of Mercantile Business Bank has been formally approved by Minister of Finance Tito Mboweni and other regulatory authorities.

Mercantile was offered for sale by its shareholder, Caixa, a Portuguese bank, because it is divesting from non-core operations outside of Portugal as part of its recapitalisation plan.

According to Capitec, the acquisition of Mercantile will fast track its (Capitec's) objective to expand its focus to a broader bank strategy. For now, the two banks will be run independently with retail clients served in Capitec branches and business banking clients referred to Mercantile.

"This brings new opportunities for both Capitec and Mercantile...for small business owners and entrepreneurs as we build Capitec's business banking offering off the 'firm foundation' of Mercantile," Capitec said in a statement issued on Wednesday.

Mercantile's core business offer is banking for established small to medium sized enterprises and entrepreneurs. In the view of Capitec, it is, therefore, well positioned to align with Capitec Bank's business banking strategy.

Capitec's plan is to grow Mercantile Bank into Capitec's Business Bank. Capitec believes this will create exciting opportunities for both Mercantile and Capitec employees.

"Our need for skilled people will significantly increase to achieve this desired growth," said Capitec.

ZAR/USD
17.14
(-0.04)
ZAR/GBP
21.55
(-0.12)
ZAR/EUR
19.35
(-0.02)
ZAR/AUD
11.91
(+0.05)
ZAR/JPY
0.16
(-0.07)
Gold
1791.20
(-0.07)
Silver
18.27
(+0.18)
Platinum
841.50
(+0.69)
Brent Crude
42.97
(-0.05)
Palladium
1917.01
(+0.52)
All Share
55243.80
(+0.72)
Top 40
50922.32
(+0.83)
Financial 15
10086.99
(-0.47)
Industrial 25
76855.87
(+0.55)
Resource 10
52017.34
(+1.71)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
I'm not really directly affected
18% - 1735 votes
I am taking a hit, but should be able to recover in the next year
23% - 2272 votes
My finances have been devastated
34% - 3397 votes
It's still too early to know what the full effect will be
25% - 2458 votes
Vote