Barclays files application with regulators
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By Ray Faure
The office of South Africa`s Registrar of Banks confirmed on Friday that UK banking group Barclays plc has filed a formal application with the country`s regulators to acquire a controlling stake in South Africa`s biggest retail bank Absa (ASA).
The application must be assessed by the Registrar of Banks and the country`s competition authorities who will then make recommendations to the Minister of Finance, Trevor Manuel, who will have the final say in the matter.
A senior official in the office of the Registrar of Banks was unable to say how long the process would take, but added that the regulators would not like to see any uncertainty in the market.
Barclays is only likely to make a formal offer for Absa sometime in January or February, given the holiday break.
A controlling stake in Absa is likely to cost the UK banking group over 20 billion rand.
Since announcing its intention to bid for a controlling stake in the South African bank in late September, Absa`s share price has escalated from around 60 rand a share to over 70 rand per share. At 10h25 on Thursday it was quoted at 71.75. But it closed at 72 rand on Thursday.
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