British bank HSBC ends talks about gaining control of Nedbank


AP

LONDON–British bank HSBC said Friday it has ended talks with Old Mutual over buying control of South Africa’s Nedbank, a deal that would have been potentially worth up to US$6.8 billion. HSBC Holdings PLC and Old Mutual PLC announced the end of the discussions, which were over a 70 percent stake and had been first revealed on Aug. 23, in brief announcements to the London Stock Exchange. “The reasons for HSBC’s withdrawal were not disclosed to Old Mutual, but were not, as far as Old Mutual is aware, related to any adverse findings during HSBC’s due diligence,” Old Mutual said. “Old Mutual will evaluate its other options concerning the shareholding in Nedbank Group Ltd. and make further announcements in due course,” the company added. HSBC shares were up 0.7 percent to 666.6 pence and Old Mutual shares were down 6.8 percent to 135.4 pence following the announcement.