The Minister of Finance and other regulatory authorities have formally approved Capitec’s purchase and acquisition of Mercantile Business Bank.
In a statement on Wednesday (9 October), Capitec said that the acquisition provides a ‘firm foundation for its business banking offering.
“There’s an opportunity to offer a business banking solution, which is based on the same fundamentals that made Capitec successful in the retail banking sector, to any small business needing a no-frills digitally lead banking solution,” Capitec said.
“The acquisition of Mercantile will fast track the bank’s objective to expand its focus to a broader bank strategy. Mercantile’s core business offer is banking for established small to medium sized enterprises and entrepreneurs. It is therefore well-positioned to align with Capitec Bank’s business banking strategy.”
Mercantile was sold to Capitec by Portuguese bank Caixa which is divesting from non-core operations outside of Portugal as part of its recapitalisation plan.
Capitec said that it will continue to run the two banks independently, with retail clients served in Capitec branches and business banking clients referred to Mercantile.
“Our plan is to grow Mercantile Bank into Capitec’s Business Bank, we believe this will create exciting opportunities for both Mercantile and Capitec employees,” it said.
“Our need for skilled people will significantly increase to achieve this desired growth.”
Speaking to BusinessTech in September, Capitec CEO Gerrie Fourie said that this arrangement would continue for at least two years before a decision is made to change the Mercantile name.
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