Capitec closes R3.56bn Mercantile Bank takeover

Capitec said on Thursday it has made a final payment for the R3.56bn acquisition of Mercantile Bank. The deal will help it branch out into business banking. 

Capitec, which has grown into the country's largest bank by clients,  made an offer for Mercantile in August 2018.

"The sale was finalised and Capitec paid R3.56bn for Mercantile. 7 November was the first official day that Mercantile became part of Capitec," the bank said in a statement.

Mercantile’s core business offer is banking for established small to medium sized enterprises and entrepreneurs. It is therefore well positioned to align with Capitec Bank’s business banking strategy, it said.

"For now, the two banks will be run independently with retail clients served in Capitec branches and business banking clients referred to Mercantile." 

Capitec's business strategy is focused on offering affordable banking, and the institution said Mercantile business is aligned with its strategy.

Mercantile was sold by its shareholder, Caixa, a Portuguese bank, which divesting from its non-core operations outside of Portugal as part of its recapitalisation plan.

The deal received approval from the Competition Commission, the South African Reserve Bank and the Minister of Finance. 

Compiled by Sibongile Khumalo

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
All Share
Top 40
Financial 15
Industrial 25
Resource 10
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.
Yes, and I've gotten it.
24% - 69 votes
No, I did not.
52% - 150 votes
My landlord refused
24% - 71 votes