The Competition Commission has recommended that the proposed acquisition of Mercantile Bank by Capitec be approved without conditions.
The Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in the relevant markets.
It further found that the proposed transaction does not raise any public interest concerns.
The final decision will now be handed down by the Competition Tribunal.
In November 2018, Capitec announced its acquisition of shares in Mercantile Bank in a move to formally enter the business banking space.
Capitec paid R3.2 billion to the Portuguese based Caixa Geral de Depósitos (CGD) for its entire 100% stake in Mercantile Bank.
CGD sold the bank as part of a strategic recapitalisation plan approved by the European Commission and requiring CGD to reduce its foreign assets.