Capitec Bank Holdings Limited said on Monday its wholly-owned subsidiary Capitec Bank had made a nonbinding offer to purchase Mercantile.
Mercantile’s core business offer is business banking to small- to medium-sized enterprises and entrepreneurs.
“The shareholder of Mercantile, Caixa Geral de Depositos, SA, a Portuguese bank, wishes to divestment from noncore operations outside of Portugal, of which Mercantile is one such investment,” Capitec said.
“Capitec Bank is one of a number of interested parties whose nonbinding offer to purchase Mercantile has been accepted,” Capitec said, adding that any proposed transaction would be subject to regulatory authority approvals.
It said Capitec Bank would commence with a formal, in-depth due diligence exercise to determine whether the opportunity presented by Mercantile fulfilled its expectation to build its business bank strategy.
“Capitec continues to investigate strategic opportunities to enhance shareholder value and deliver to its commitment to the market in offering affordable, simple and transparent banking services,” the group said.