Nedbank is one of the largest banks of South Africa. This bank is informed to be nothing a takeover in South Africa as diligence is becoming too complex day by day. HSBC is also a well-known name of a bank which has more assets than any other bank. This bank is poised to walk away from a deal of 8 billion dollar on a majority stake in South Africa retail lender bank, Nedbank.
It is reported that shares of Nedbank fell to about 4% on the Johannesburg Stock Exchange on Friday morning. Further reports also informed that Nedbank’s majority owner was became down by 5% and the bank’s London-listed shares also get lost 6.4% of their actual values, to trade at 136 pence. Shares of HSBC also gained 0.6% to 666.4 pence in London.
In August, HSBC announced that it was interested to get buying a majority stake in South Africas 4th largest bank, which is holding 52% of Nedbank?4.5 billion ($7 billion) as according to an estimation. After that HSBC would approach Nedbanks shareholders to get a total of 70% lenders.
Mike Geoghegan, the Chief Executive of HSBC, who managed the pursuits of Nedbank, was in a chance to get a grip in fast growing economy of South Africa. In late September, he resigned as he had threatened to leave this.!