FMB acquires Barclays Bank Zimbabwe

First Merchant Bank (FMB) Capital Holdings Plc (FMBCH) and Barclays Bank Zimbabwe (BBZ) have announced the successful acquisition of a majority shareholding in Afcarme Zimbabwe Holdings (Pvt) Limited, the holding company for Barclays Bank of Zimbabwe Limited (BBZ) from Barclays Bank PLC (BBPLC).

In a statement, the BBZ Board Chairman, Antony Mandiwanza said: “The completion of this transaction marks an important juncture in the history of Barclays Bank Zimbabwe. It is testament to the successful franchise that the institution has become, particularly since dollarization and in the current challenging macroeconomic environment, as evidenced by our 2017 half year results.”

Completion of this transaction comes after all statutory and regulatory requirements were fulfilled.

The FMB group has banking operations in Malawi, Mozambique, Zambia and Botswana.

The move sees FMBCH acquiring a 42% shareholding in BBZ with Barclays PLC retaining a 10% stake (employees hold 15% through an Employee Share Ownership Trust and the remaining 33% are listed on the ZSE).

“Despite the change of ownership both FMBCH and Barclays have stressed that it’s ‘business as usual’ with no immediate changes anticipated to its service offering and network,” the statement read in part.

“For the first 12 months after conclusion of the deal, the bank will continue to operate under the Barclays brand with the FMBCH brand being introduced over a subsequent two year period.”

FMB Chairman, Hitesh Anadkat said: “This transaction marks a significant milestone in our steps to becoming a truly African bank offering financial solutions to the region. We share many of the same values as our colleagues at Barclays and we will continue to create meaningful value for all our stakeholders – customers, employees, investors and the Zimbabwean community at large.”