Absa to buy HSBC’s Mauritian assets

• Deal aims to grow its retail and business banking offering in the country

Banking group Absa is on the verge of buying the Mauritian assets of Hongkong and Shanghai Banking Corporation (HSBC) for an undisclosed amount, pending regulatory approval, as part of its strategy to grow its retail and business banking offering in the country.

Absa group CEO Arrie Rautenbach said the imminent deal reinforces Absa Mauritius’ commitment to expanding as an influential role player in the Mauritian economy.

“The transaction speaks to Absa’s growth aspirations in Africa, where we see significant opportunity,” Rautenbach said.

“We remain purposeful in our efforts to create a more diversified business across geography, segment and product, and we will continue to deploy capital to attractive growth prospects across the continent as we deliver on our ambition to being a leading pan-African bank.”

The deal will see HSBC sell its wealth, personal and banking operation in Mauritius to Absa’s subsidiary in the country. The deal includes about 38,000 customers. HSBC Mauritius CEO Greg Lowden said he expects the deal to be concluded by the third quarter of 2024.

“Our decision to sell these operations reflects our desire to focus our strengths as a leading international bank in Mauritius. Absa Mauritius is a worthy home for the many retail and business banking customers we served for many years,” said Lowden.

“We will continue to serve the needs of our international customers, connecting them to our world-leading capabilities and international network.”

HSBC Mauritius said it will be supporting large and mid-market domestic corporates after the transaction is concluded.

“Markets and securities services, multicurrency corporate lending, foreign exchange, trade finance, global custody and sustainable finance will continue to be offered to clients.”

Mauritius, with its population of about 1.3-million people, has made great strides since independence in 1968 and is now classified as an upper-middleincome economy. Its mixed developing economy is based on agriculture, exports, financial services and tourism.

Absa Mauritius MD Ravin Dajee said the mooted deal gives the lender an opportunity to scale its retail and business banking division by leveraging off existing resources, expertise and infrastructure such as its innovative digital solutions.

“We are proud to be taking over a solid portfolio from HSBC. We are committed to working closely with HSBC to secure all necessary approvals and ensure a seamless transition,” said Dajee.

The HSBC group established a presence in sub-Saharan Africa in 1981 and entered the SA market in 1995.

The HSBC branch in SA’s principal activities are to provide banking services to corporate and wholesale clients and to serve as a representative office for the private bank, Dajee said.

HSBC, headed by Noel Quinn, has been strengthening its position in mainland China. In October it acquired Citi’s retail wealth management portfolio in mainland China, a portfolio with $3.6bn in assets and deposits.

The Mauritian banking industry consists of about 20 banks, five of them local and 12 foreign-owned with subsidiaries and a few branches.

All the banks are licensed by the Bank of Mauritius to carry out banking business locally and internationally.

THE IMMINENT DEAL REINFORCES ABSA MAURITIUS’ COMMITMENT TO EXPANDING AS AN INFLUENTIAL ROLE PLAYER