Behind the Old Mutual and Nedbank divorce
ANALYSIS: Old Mutual's plan to ditch Nedbank
The business relationship between Nedbank and Old Mutual is expected to be little different after their separation
It was never a secret, but it still made the front pages: Old Mutual has officially announced that it will soon give up control of Nedbank. Bruce Hemphill, Old Mutual’s group CEO, says Nedbank is a very good asset for his shareholders to own, but most will be held directly by Nedbank shareholders, not through Old Mutual. First comes the split of Old Mutual Plc into two listed businesses: Old Mutual Ltd, which closely resembles the group that demutualised in 1999, and the UK-based wealth manager Old Mutual Wealth. Hemphill says that soon after the shareholder register has “settled” Old Mutual Ltd will unbundle two-thirds of its Nedbank holding.Nedbank CEO Mike Brown says the shareholding level was agreed to by both the insurer and the bank, but that there is no science in the number. He says it is no accident that it is on par with the 20% position Nedbank holds in its West African associate Ecobank. Brown says the business relationship between Nedbank and Old Mutual should not chang...
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