Global banking giant HSBC announced on Friday that it had scrapped talks with British insurer Old Mutual over the purchase of a majority holding in South Africa's Nedbank. "HSBC Holdings plc announces that discussions with Old Mutual plc about the possible acquisition of a majority stake in Nedbank Group Limited have not been successfully concluded and have ended," HSBC said in a brief statement.
"Notwithstanding this, HSBC remains committed to the South African market and to growing its business in South Africa." A company spokesman added that the Nedbank purchase was not in line with its strategy. Shortly beforehand, Old Mutual had released a separate statement which also revealed the news. "Old Mutual plc has been informed today that HSBC will not proceed with a partial offer for Nedbank following the expiry of the agreed exclusivity period," the insurance company said.