Financial services groups Sanlam and Absa say all suspensive conditions to the proposed merger of their respective investment management businesses in South Africa have been met.
The transaction sees Absa exchanging its investment management business, Absa Investments, for a stake in Sanlam Investment Holdings (SIH).
Absa Investments comprises Absa Asset Management, Absa Alternative Asset Management, Absa Fund Managers and Absa Multi-Management.
The conclusion of the transaction is indicated to conceivably strengthen SIH’s offering through enhanced scale, broader distribution reach and a more holistic range of investment solutions. This further enhances SIH’s position as one of South Africa’s largest black-owned asset managers, the companies say.
Absa has also entered into a ten-year distribution agreement with SIH, meaning the expanded operations will use the distribution networks of both Sanlam and Absa, which broadens market reach for the enlarged SIH.
“We are excited that the agreement to integrate the investment management businesses of Sanlam and Absa has been concluded. Sanlam and Absa clients will gain from the enhanced investment offering. This partnership will allow us to deliver investment solutions that sustain future generations.
“Scale is critical in driving the product and service innovation required to meet clients’ financial goals. Combined capabilities, expertise and commitment to our clients will position us to be the preferred investment solutions provider in South Africa. Our promise is to serve our customers with pride and deliver world-class client experience and solutions,” Sanlam Investment Group CEO Carl Roothman says.