South Africa?s second biggest financial institution, FirstRand has taken over Merchant Bank. A statement from Merchant Bank said it has accepted 176.4 million Ghana cedis offer from FirstRand in exchange for 75 percent stake in the bank.?

This confirmed earlier report by JOYBUSINESS about the takeover. FirstRand?s bid will comprise an acquisition of shares from existing shareholders for 140 million and a subscription for new shares for 36 million Ghana cedis.

The proposed transaction is however subjected to regulatory approval in South Africa and Ghana. Commenting on the proposed transaction Joe Tetteh CEO of MBG said: ?We look forward to welcome FirstRand as strategic partner to MBG to reposition the bank for future growth. FirstRand is a leading and well diversified South African bank with an established franchise in sub-Saharan Africa. It will provide MBG with the necessary skills, products, relationships and experience to re-establish MBG as a leading bank in Ghana.?

Listed on the JSE and the Namibian Stock Exchange, FirstRand Limited, with a market capitalisation in excess of ZAR150 billion, is one of the largest financial institutions in South Africa. FirstRand?s portfolio of leading franchises provides banking and insurance products and services to retail, commercial, corporate and public sector customers in South Africa and several African countries.

It has a portfolio of market-leading franchises: Rand Merchant Bank (RMB), South Africa?s premier investment bank; First National Bank (FNB), the country?s third largest domestic retail and wholesale bank by assets; and WesBank, the largest asset finance operator with over 30% of South Africa?s motor market.

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