Absa Group is considered one of the largest financial services institutions in South Africa which offers a wide range of products including retail and commercial banking, investment management, finance and insurance, credit cards, private equity, and wealth management. A £1.3 billion deal has been reached as Barclays are going to will up their share in Absa from 55.5% to 62.3% and Absa will take over Barclays in nine countries in Africa.
This step came as a continuation result of Barcalys moving out from Dubai in 2011 and have the headquarters in Johannesburg, South Africa. This move will result in a 14.4 million as customer base, also the FSA boss Hector Sants is considering joining the bank as a compliance and regulatory overseer. This role will have him reporting directly to the chief executive and a former boss of the UK's financial regulator is certainly a great step for the company having a reputation being involved in the Libor Scandal.
Can Hector help preventing Barclays from future predicaments? How will this deal effect Absa in the future? Is Barclays benefiting from investing in South Africa? How?