Barclays bank is set to return to South Africa after an absence of 20 years having received approval from a Johannesburg court to go ahead with its takeover of local bank Absa.
Barclays had secured support from the board of the Springbok banking organization back in early May for its $5.4 million purchase. However, its takeover of a majority share had been held up by objections, including a lobby group seeking reparations from Barclays for its involvement in apartheid.
The high court, sitting in South Africa’s largest city and financial heart, rejected the objections, removing the last obstruction to Barclays’ return to the African nation. The UK banking outfit will now acquire 60% of Absa shares through two offer periods, 32% will be acquired in the initial period.
Barclays, which had been the biggest bank in South Africa before it was forced out in the 1980s, will have immediate access to seven million new customers once the purchase is completed. The UK bank said earlier that it plans to use the tie up with Absa to launch its credit card, investment banking and asset management businesses into South Africa, which it hopes will boost its African contribution to total income from a fifth to a third.