JOHANNESBURG – The Competition Commission has recommended to the Competition Tribunal that the proposed merger, whereby Capitec intended to acquire Mercantile Bank Holdings for R3.2 billion, be approved, without conditions.
Capitec operates as a retail bank, and although it also offers a limited range of business services, it does not provide business banking services to entities such as SME’s, close corporations, companies, partnerships and trusts.
Capitec offers transactional accounts, savings plans, insurance plans and credit options such as loans and credit cards. In addition, Capitec also provides forex services and merchant services.
Mercantile Bank is a registered bank which provides business banking services to customers throughout South Africa. Mercantile Bank’s banking services includes, among others, borrowing solutions, investment solutions – call accounts, notice and fixed deposits and money market accounts – and insurance solutions.
The Commission found that the proposed transaction was unlikely to result in a substantial prevention or lessening of competition in the relevant markets. The Commission further found that the proposed transaction does not raise any public interest concerns.
Capitec beat Nedbank, and two consortiums – the Public Investment Corporation and microlender and microinsurer Bayport Financial Services, and Grindrod Bank and Arise – in emerging as the winning bidder for Mercantile Bank.
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