South African financial services firm Cadiz Holdings said on Monday the 60 percent sale of its stock broking arm to BNP Paribas had been completed.
The 150 million rand ($19 million) deal was first announced in August and will give the French bank a foothold in Africa's biggest economy at a time when more institutional investors are targeting African equities.
The new business, named BNP Paribas Cadiz Securities, was launched on Nov. 1, Cadiz said.
Cadiz has been struggling in recent years with stiff competition from major overseas banks. The firm also said on Monday that diluted headline earnings per share, the main profit gauge in South Africa, fell by 93 percent to 0.9 cents in the first half, hit by reduced fees in a difficult market.
South Africa has become an increasingly difficult market to operate in as an independent broker, as more foreign banks bulk up their presence. The industry shift toward electronic trading has been capital intensive and put the squeeze on small players.
The investment banking arm of India's Religare Enterprises took nearly 75 percent of unlisted South African broker Noah Financial Innovation in a similar deal in July while Moscow-based Renaissance Capital bought local broker BJM Securities for 207 million rand last year. - Reuters