Capitec has completed its acquisition of Mercantile Bank after making its final payment on Thursday (7 November), the bank said in a statement.<\/p>\n
Capitec said that it purchased Mercantile as it ‘believes 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’.<\/p>\n
“This applies to any business needing a no-frills digitally-led banking solution.<\/p>\n
“The acquisition of Mercantile will fast track the bank\u2019s objective to expand its focus to a broader bank strategy,” it said.<\/p>\n
It added that Mercantile\u2019s core business offer is banking for established small to medium-sized enterprises and entrepreneurs, which means it is well-positioned to align with Capitec’s business banking strategy.<\/p>\n
Mercantile was offered for sale by its shareholder, Caixa, a Portuguese bank, due to it divesting from non-core operations outside of Portugal as part of its recapitalisation plan.<\/p>\n
Before the deal could be finalised, regulatory approval had to be obtained from the Competition Commission, the South African Reserve Bank and the Minister of Finance.<\/p>\n
All regulatory approvals and contractual conditions were met on 9 October 2019.<\/p>\n
The sale was finalised and Capitec paid R3.56 billion for Mercantile. and 7 November was the first official day that Mercantile became part of Capitec, the bank said.<\/p>\n
Capitec said that for now the two banks will be run independently with retail clients served in Capitec branches and Business Banking clients referred to Mercantile.<\/p>\n
“We believe our acquisition of Mercantile will create exciting opportunities for both Mercantile and Capitec employees.<\/p>\n
“Our need for skilled people will significantly increase to achieve our desired growth,” it said<\/p>\n