STRATEGY SHIFT
Absa opts to offload second business unit to Sanlam
In a move showing its newfound freedom following the exit of Barclays as majority shareholder, Absa will in a strategy shift sell a second business unit in as many months. Absa would sell its employee benefits business, with assets under administration of R84bn, to Sanlam, the companies said. Sanlam Employee Benefits (SEB) would have assets under administration of R280bn following the deal, the unit’s CEO, Dawie de Villiers said. "On a members under administration basis, it will make us the biggest administrator." SEB was likely to be second-largest, after Alexander Forbes, on an assets under administration basis, he said. Competition authorities should approve the deal because the "markets that would be affected by the transaction are characterised by high levels of competition", he said.
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