By David Dolan and Kelvin Soh
JOHANNESBURG/HONG KONG (Reuters) - HSBC is in talks to buy up to 70 percent of South Africa's Nedbank, in a potential $6.8 billion deal that would give Europe's biggest lender a broader gateway to the fast-growing African continent.
HSBC and Anglo-South African insurer Old Mutual, which owns a controlling stake in Nedbank, said in separate statements on Monday they were in exclusive talks about the deal.
Old Mutual said HSBC could purchase up to 70 percent of South Africa's fourth-largest bank, an acquisition that could be worth about 49.9 billion rand, given Nedbank's current market value.
It was not immediately clear whether HSBC would get the necessary clearance from South Africa's regulators to buy a stake in the bank. HSBC already has a presence in South Africa, offering commercial banking and offshore personal banking.
For HSBC, which has lagged behind rival Standard Chartered in Africa, the acquisition would bulk up its presence as more of its Chinese customers are looking to do deals on the resource-rich continent.
HSBC also faces a growing threat from South Africa's Standard Bank, which is 20 percent owned by China's Industrial and Commercial Bank of China, and is positioning itself as a gateway to Africa. Reuters Africa
