HSBC to buy up to 70% of Nedbank

HSBC will buy up to 70% of South Africa's Nedbank, in a potential $6.8 bln deal that would give Europe's largest lender a presence in Africa's largest economy and a gateway to the fast-growing continent.
HSBC and Anglo-South African insurer Old Mutual, which owns a controlling stake in Nedbank, said in separate statements on Monday they were in exclusive talks about the deal.
Old Mutual said HSBC could acquire up to 70% of South Africa's fourth-largest bank, a deal that could be worth about 49.9 bln rand ($6.84 bln), given Nedbank's current market value.
Old Mutual is undergoing a strategic overhaul to slim down its complicated structure.
Nedbank said in a statement that HSBC was an attractive international banking partner.
Nedbank this month posted flat first-half earnings and said it would struggle to meet its medium-term forecasts, hurt by its money-losing retail unit.