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