HSBC in talks to sell South African unit to FirstRand

Source: Reuters.

A deal with Rand Merchant Bank, the corporate and investment banking division of FirstRand, has not yet been finalised and there is no guarantee the transaction will close.

No financial details were disclosed.

HSBC and FirstRand declined to comment.

HSBC entered South Africa in 1995, and today serves mainly large companies operating on the continent.

According to an earlier Bloomberg report, African, Chinese and United Arab Emirates-based bidders are interested in HSBC's business in South Africa.

HSBC also has an equities business in South Africa that it plans to sell, Bloomberg added.

HSBC has in recent years slashed its businesses in Western markets such as the US, France and Canada to redirect its focus on Asia and markets where it has scale.