CORRECTED - Standard Chartered Is Acquiring Absa's Operations
(Corrects paragraph 2 to 'immaterial' instead of 'material')
In an announcement, Standard Chartered would be acquiring Absa Group, the South African custodial and trustee operations of Barclays Plc. This is a move designed to increase its presence in Africa's fastest growing economy.
Absa's sale of its operations follows the lead of its Barclay's Plc, who also sold its custody businesses within Africa to Standard Chartered back in 2010. Both banks did not disclose the deal, but Absa had confirmed that the sale would be 'immaterial' to the group. Custodial services include back office management for overseas investors that trade in the South African bourse.
The South African operations of Standard Chartered are being expanded with the opening of two new branches in the top cities of the country. The locations are designed to tap into corporate clients that have existing operations throught the horn of Africa.
In 2012, the financial institution had created revenues in the amount of US$1.6 billion in the continent. It is also planning to double these revenues in the next five years.