The Minister of Finance and other regulatory authorities have formally approved Capitec\u2019s purchase and acquisition of Mercantile Business Bank.<\/p>\n
In a statement on Wednesday (9 October), Capitec said that the acquisition provides a ‘firm foundation for its business banking offering.<\/p>\n
“There\u2019s 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.<\/p>\n
“The acquisition of Mercantile will fast track the bank\u2019s objective to expand its focus to a broader bank strategy. Mercantile\u2019s core business offer is banking for established small to medium sized enterprises and entrepreneurs. It is therefore well-positioned to align with Capitec Bank\u2019s business banking strategy.”<\/p>\n
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.<\/p>\n
Business banking<\/strong><\/p>\n 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.<\/p>\n “Our plan is to grow Mercantile Bank into Capitec\u2019s Business Bank, we believe this will create exciting opportunities for both Mercantile and Capitec employees,” it said.<\/p>\n “Our need for skilled people will significantly increase to achieve this desired growth.”<\/p>\n 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.<\/p>\n
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