ABSA Bank Zimbabwe

ABSA Bank Zimbabwe

 ABSA Bank of South Africa will soon move in to lift a controlling 67,7 percent stake in Barclays Bank (Zimbabwe), principally as a key step towards fulfilling its multi-million dollar deal with United Kingdom-based Barclays plc last January.

Secondly, this will also satisfy Absa’s recent exit from CBZ Bank, where it sold back to the bank its 24,1 percent stake as a major strategy in avoiding duplication of risk and, at the same time, preparing for its swoop on Barclays.

Although data on Absa’s intended stake in Barclays Zimbabwe was not immediately available, top market sources indicated the deal was imminent. It would have to go through other regulatory approvals, as usual procedure, however.

It was highly unlikely that Barclays would rebrand, a source said, but benefits from the association with Absa “would be so immense”. Sources said about US$86 million raised from the sale of equity in CBZ would be re-routed to the Barclays purchase although further details about the transaction remained sketchy.

Following Barclays plc’s acquisition of a 56 percent stake in Absa earlier on in 2006, the South African bank had agreed terms for the purchase of all Barclays Africa divisions within the sub-Saharan region last year. And this started with the acquisition of Barclays South Africa last year. “The bank (Barclays Zimbabwe) is likely to retain its brand although Absa’s current position in Africa would strengthen operations quite phenomenally,” noted a source that preferred anonymity.