Sanlam and Absa have announced that all suspensive conditions have been met in their agreement to combine their local investment management businesses, to create a black-owned investment manager with more than R1 trillion in assets under management.
The transaction, which was first announced in October 2021, became effective on 1 December this year. The deal enhances Sanlam’s position as one of South Africa’s largest black-owned asset managers.
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The transaction sees Absa exchanging its investment management business, Absa Investments, for a stake in Sanlam Investment Holdings Proprietary Limited (SIH). Absa Investments comprises Absa Asset Management, Absa Alternative Asset Management, Absa Fund Managers and Absa Multi-Management.
Absa has also entered into a 10-year distribution agreement with SIH, meaning the expanded operations will use the distribution networks of both Sanlam and Absa, which significantly broadens market reach for the enlarged SIH.
Sanlam Investment Group chief executive Carl Roothman said: “Scale is critical in driving the product and service innovation required to meet clients’ financial goals. Combined capabilities, expertise and commitment to our clients will position us to be the preferred investment solutions provider in South Africa.”
Absa Group financial director Jason Quinn said: “We are delighted with the successful conclusion of the transaction, which delivers the scale, capabilities and transformation which we view as essential to achieving strong and sustainable growth. Absa remains committed to the investment management sector through its shareholding in the combined entity and a 10-year distribution agreement, which will help us to offer an enhanced customer value proposition by creating a deeper, broader range of investment solutions for our clients.”
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