Societe Generale and Absa agree to roll out a unique pan-african wholesale banking offering
Two leading banks to roll out unique wholesale banking offering. Source: shutterstock.com
Societe Generale and Absa Group Limited, two leading banks on the African continent, announce the signing of a Memorandum of Understanding to roll out a commercial agreement and expand their activities through the development of a pan-African wholesale banking offering. Separately, Absa agreed to acquire Societe Generale’s custody, trustee and clearing services operated in South Africa.
Societe Generale has a presence in 19 African countries, Absa – in 12. This partnership will leverage on geographical complementarity and combined strengths of both banks to offer a wider range of banking products and services to international and domestic corporate clients and financial institutions with operations in Africa. This will also enable them to extended offering across 27 countries in Africa.
According to the official press release, the pan-African offering will be enriched over time with new complementary services and products.
Societe Generale has reached a separate agreement to sell its custody, trustee and derivatives clearing services operated in Johannesburg to Absa Group Limited. Absa agreed to acquire the related activities conducted by Societe Generale in South Africa, notably its client portfolio, IT systems and all the employees dedicated to these activities. The transaction is subject to the approvals of the relevant authorities, which are anticipated to be obtained by end of 2019. The securities lending and borrowing services are not part of the transaction and will be terminated by end of March 2019.
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