FBC Holdings Limited
(FBCH) and Standard Chartered Bank have entered into an agreement for the
acquisition of Standard Chartered’s business in the Republic of Zimbabwe,
subject to the approval of the regulatory authorities including the Reserve
Bank of Zimbabwe (RBZ).
The announcement was made
at Standard Chartered’s Headquarters in Harare, Zimbabwe by Sunil Kaushal from
Standard Chartered and Dr John Mushayavanhu from FBCH, at a signing ceremony
held in Harare. Under the agreement, FBCH will acquire 100 percent of the
shareholding in Standard Chartered Bank (Zimbabwe) Limited and by extension,
the custodial services business that is wholly owned by Standard Chartered Bank
Zimbabwe.
As part of the agreement,
FBCH will also acquire the economic interest in Africa Enterprise Network Trust
whose main asset is a 20.7% shareholding in Mashonaland Holdings. FBCH will
continue to employ all of Standard Chartered Bank Zimbabwe’s employees. The two
banks will work closely in the coming months to provide a seamless transition
for its clients and staff.
In a statement released
on Thursday, Sunil Kaushal, Regional Chief Executive Officer, Africa & the
Middle East (AME), stated “The agreement
with FBCH for the sale of Standard Chartered’s business in Zimbabwe is in line
with the bank’s global strategy, aimed at achieving operational efficiencies,
reducing complexity, and driving scale. This strategic decision allows us to
redirect resources within the AME region to areas with significant growth
potential, ultimately enabling us to better support our clients”. According
to Dr. John Mushayavanhu, Group Chief Executive of FBC Holdings, the acquisition
enables FBCH to consolidate its banking market share, customer base, and market
competitiveness in a rapidly changing banking landscape. Commenting on the
agreement, Dr John Mushayavanhu Group Chief Executive of FBC Holdings Limited,
said, “We are pleased to sign this agreement today and to have been selected by
Standard Chartered Bank as the preferred buyer. Standard Chartered is a leading
regional and international bank with more than [150] years of experience
globally. The bank has been present in Zimbabwe for more than [130] years.
Equally, FBCH is a leading financial services group in Zimbabwe and the region,
with interests in commercial banking, insurance, re-insurance, micro-finance,
stock-broking, and mortgage finance. The combined strengths of the two
institutions will enable us to better respond to the ever-changing requirements
of our clients.”
“Standard Chartered
Bank’s clients can expect the continued provision of seamless trade finance and
cross-border payments by FBCH. We welcome Standard Chartered’s employees to the
FBCH group. Both clients and employees alike will benefit greatly from their
association with a leading financial institution such as FBCH. Ultimately, the
acquisition will further enhance shareholder value. Signing this agreement
today is a testimony to the FBC group’s strong financial position and further
enhances its presence in the market. We thus look forward to working closely
with Standard Chartered Bank over the coming few months, towards achieving a
smooth transition and successful completion of the transaction. We are now in
the process of securing the necessary regulatory approvals from all the
requisite regulators,” he added.
In April 2022, Standard
Chartered strategically decided to divest from a number of markets, namely
Lebanon, Angola, Cameroon, Gambia, Sierra Leone, Zimbabwe, and Jordan, and to
exit the CPBB (Consumer Private and Business Banking) business in Côte d’Ivoire
and Tanzania. The Bank announced the sale of its business in Jordan earlier in
March this year.
By:
Kanto Okanta