BoG to reject FirstRand Merchant merger

Business News of Tuesday, 2 April 2013


Information reaching XYZ BUSINESS indicates that the Bank of Ghana (BoG) will not approve the merger of Merchant Bank and First Rand Bank of South Africa anytime soon.

Already, the Central Bank has rejected the proposal by Merchant Bank made on February 27, to withhold publication of its 2012 financial statement.

The Central Bank of South Africa and its market regulator has approved the acquisition of Merchant Bank by First Rand.

But XYZ BUSINESS has gathered that the Bank of Ghana is not satisfied with some information in the Merchant bank’s 2011 financial report.

First Rand Bank, the second largest bank in South Africa, last year announced its acquisition of 75 percent stake in Merchant Bank for 91 million dollars.

This follows approval from Merchant Bank’s Board of Directors and majority shareholder SSNIT.

The deal entails an acquisition of 592.2 million worth of shares and a subscription of new shares for the remainder of the stake.