JOHANNESBURG (Reuters) - South Africa’s Capitec Bank said on Thursday its 3.2 billion rand ($232 million) offer to buy Mercantile Bank had been accepted, paving the way for the Stellenbosch-based lender to expand into business banking.
Capitec had been among bidders for Mercantile Bank, a unit of the Portuguese state-owned banking group, Caixa Geral de Depósitos, S.A. (CGD).
CGD is divesting from non-core operations outside of Portugal as part of its recapitalisation plan.
“Mercantile’s core business offer is business banking for small- to medium-sized enterprises and entrepreneurs and it is therefore well positioned to align with Capitec Bank’s business banking strategy,” Capitec said in a statement.
The acquisition, which is subject to regulatory approval, will be paid from capital and cash reserves, it added.
($1 = 13.7700 rand)
Reporting by Nqobile Dludla; Editing by Joe Brock