NAIROBI, Kenya, Aug 21 – Barclays Bank PLC is looking to combine its Africa operations with its subsidiary, Absa Group.
Barclays Bank of Kenya Managing Director Adan Mohamed said the move is part of the parent company’s strategy to operate as one bank in Africa.
With deliberations still ongoing, Barclays will seek to combine its interests in Botswana, Ghana, Kenya, Tanzania, Uganda, Zambia and the Indian Ocean with Absa.
However, Barclays Bank PLC will continue to remain as the majority shareholder of the combined African operations.
“The listing of Barclays Bank of Kenya on the Nairobi Securities Exchange (NSE) would be maintained. Only Barclays’ holdings in Barclays Bank of Kenya would be included in the proposed combination,” Mohamed said.
The bank filed a cautionary announcement with the NSE on Tuesday morning confirming its parent company’s intent.
Pending the approval of the Boards of Barclays and Absa as well as Absa shareholder approval and regulatory approvals in the relevant jurisdictions, the proposed combination is expected to be completed in 2013.
“This proposed combination of the majority of the Barclays Africa businesses with Absa is the next logical step in delivering our ‘One Africa’ strategy, which Barclays PLC announced last year,” Maria Ramos, Chief Executive of Absa Group and Barclays Africa, said on the proposed combination.
Ramos said they have already consolidated the regional offices for Absa Africa and Barclays Africa, as well as introduced a global product strategy for banking across the continent.
The proposed combination of the businesses will mirror the managerial and operational structure that is has already put in place, she added.