Capitec pays final purchase price for Mercantile and concludes acquisition
This article has been supplied as a media statement and is not written by Creamer Media. It may be available only for a limited time on this website.
We are pleased to announce that today marks the completion of Capitec’s acquisition of Mercantile Bank. The final payment has been paid today as well.
Capitec Bank welcomes the Mercantile team as well as the clients of the bank to the Capitec family. This is an exciting time for both Capitec and Mercantile and brings new opportunities for both companies, for the Staff at Capitec and Mercantile and for Small Business Owners and Entrepreneurs. Together we will build Capitec’s Business Banking offering using the “firm foundation” created by Mercantile.
Why did we purchase Mercantile?
We believe there’s an opportunity to offer a business banking solution, which is based on the same fundamentals that made Capitec successful in the retail banking sector. This applies to any business needing a no frills digitally led banking solution. The acquisition of Mercantile will fast track the bank’s objective to expand its focus to a broader bank strategy.
Mercantile’s core business offer is banking for established small to medium sized enterprises and entrepreneurs. It is therefore well positioned to align with Capitec Bank’s business banking strategy. Mercantile was offered for sale by its shareholder, Caixa, a Portuguese bank, due to it divesting from non-core operations outside of Portugal as part of its recapitalisation plan.
How did the process take place?
- Our vision expanded
We identified the opportunity to offer a business banking solution based on the same fundamentals that have transformed the retail banking sector – simplicity, affordability, transparency and personalised service.
- Opportunity knocked
In late 2017 Mercantile was put up for sale. Our team performed an in-depth due diligence to determine whether the opportunity presented by Mercantile fulfilled Capitec’s expectation to build the best business banking strategy. The conclusion was that Mercantile did in fact offer a unique opportunity.
- Game on
On 31 August 2018 Capitec submitted a formal bid to buy Mercantile Bank.
- Meeting the requirements
Before the deal could be finalised, regulatory approval had to be obtained from the Competition Commission, the South African Reserve Bank and the Minister of Finance. All regulatory approvals and contractual conditions were met on 9 October 2019.
5. Day 1: 7 November 2019
The sale was finalised and Capitec paid R3.56 billion for Mercantile. 7 November was the first official day that Mercantile became part of Capitec.
Next Steps
For now, the two banks will be run independently with retail clients served in Capitec branches and Business Banking clients referred to Mercantile.
We believe our acquisition of Mercantile will create exciting opportunities for both Mercantile and Capitec employees. Our need for skilled people will significantly increase to achieve our desired growth.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation