FBC signs agreement to buy Standard Chartered Zim ...

FBC signs agreement to buy Standard Chartered Zim business

Zim Now Writer

FBC Holdings Limited and Standard Chartered Bank have entered into an agreement for the acquisition of Standard Chartered’s business in Zimbabwe, subject to the approval of the regulatory authorities, including the Reserve Bank of Zimbabwe.

The announcement was made at Standard Chartered Bank’s headquarters in Harare today during a signing ceremony.

In a statement released today, Regional Chief Executive Officer, Africa and the Middle East, Sunil Kaushal, said:

“The agreement with FBCH for the sale of Standard Chartered’s business in Zimbabwe is in line with the bank’s global strategy, aimed at achieving operational efficiencies, reducing complexity, and driving scale. This strategic decision allows us to redirect resources within the AME region to areas with significant growth potential, ultimately enabling us to better support our clients.”

According to Dr John Mushayavanhu, Group Chief Executive of FBC Holdings, the acquisition enables FBCH to consolidate its banking market share, customer base and market competitiveness in a rapidly changing banking landscape.

“We are pleased to sign this agreement today and to have been selected by Standard Chartered Bank as the preferred buyer. Standard Chartered is a leading regional and international bank with more than 150 years of experience globally. The bank has been present in Zimbabwe for more than 130 years.

“Equally, FBCH is a leading financial services group in Zimbabwe and the region, with interests in commercial banking, insurance, re-insurance, micro-finance, stock-broking and mortgage finance. The combined strengths of the two institutions will enable us to better respond to the ever- changing requirements of our clients,” said Dr Mushayavanhu.

Standard Chartered Bank’s clients, Mushayavanhu said, can expect the continued provision of seamless trade finance and cross-border payments by FBCH.

“We welcome Standard Chartered’s employees to the FBCH group. Both clients and employees alike will benefit greatly from their association with a leading financial institution such as FBCH. Ultimately, the acquisition will further enhance shareholder value,” said Dr Mushayavanhu.

“Signing this agreement today is a testimony to the FBC group’s strong financial position and further enhances its presence in the market. We thus look forward to working closely with Standard Chartered Bank over the coming few months, towards achieving a smooth transition and successful completion of the transaction. We are now in the process of securing the necessary regulatory approvals from all the requisite regulators.”

Standard Chartered strategically decided to divest from a number of markets, namely Lebanon, Angola, Cameroon, Gambia, Sierra Leone, Zimbabwe and Jordan, and to exit the CPBB (Consumer Private and Business Banking) business in Côte d’Ivoire and Tanzania in April 2022. The Bank announced the sale of its business in Jordan earlier in March this year.