BANKING ACQUISITIONS
SA no longer on Atlas Merchant Capital’s investment radar
Contrary to local analysts, CEO Bob Diamond says the local banking sector is established and valuations are high
Atlas Merchant Capital, which earlier sought to bid for Barclays Africa, is not seeking more investment opportunities in SA. Founding partner Bob Diamond says the local banking sector is established and valuations are high. Atlas Merchant Capital had viewed Barclays Africa as a "terrific opportunity", but only if it could secure a majority position, CEO Diamond said on Wednesday on the sidelines of the Global Business Forum on Africa in Dubai. The forum seeks to promote investment opportunities in Africa. Atlas Merchant Capital and Atlas Mara, its listed arm formed to acquire banks in Africa, were not seeking acquisition opportunities in SA, Diamond said. SA’s banks were established and traded at high multiples. Diamond’s views contrast with those of domestic analysts, many of whom say the country’s banking shares — weakened by low economic growth and sovereign credit downgrades — are bargains. "A lot of the value-add we can bring in other countries is already in SA," he said. Atlas...
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