Barclays has applied for regulatory approval, in terms of section 37 of the Banks Act, to acquire a majority shareholding, of more than 49 per cent but less than 74 per cent, of ABSA ("the proposed transaction"). Such a transaction requires the consent of the Minister of Finance ("Minister"). The Minister, in granting such approval, must be satisfied that the proposed acquisition will not be contrary to public interest, as well as the interests of the depositors, bank, and controlling company involved.
Pursuant to the receipt of the recommendations of the Registrar of Banks and the Competition Commission, the Minister has considered material aspects of the proposed transaction.
Acting on this, the Minister hosted a meeting this morning attended by the Governor of the South African Reserve Bank and representatives of ABSA and Barclays.
The meeting was exploratory and the outcome non-binding in nature. The discussions included an evaluation of conditions under which such an acquisition may be permitted, taking into account the requirements of the Banks Act, ongoing maintenance of the soundness of the South African financial system and prevailing policy objectives.
The parties regard these discussions as having afforded an opportunity, without prejudice to the position of the applicant or that of the regulatory authority, to assist the respective boards of Barclays and ABSA to give further consideration to the matter.
No decision regarding regulatory approval will be made until such time as the representatives of ABSA and Barclays have reverted to the Minister on these matters.