Absa and Sanlam have agreed to merge their investment businesses in a deal that is set to create a black-owned asset manager with more than R1-trillion in assets under management (AUM).

The agreement, which will put the entity in prime position to attract money from institutions that have come under pressure to allocate flows into black-owned companies, will see Absa merge its investment business with Sanlam Investment Holdings, in exchange for a 17.5% stake in the newly empowered asset manager...

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