Sanlam and Absa combined their investment management businesses in South Africa after they had met all the needed conditions.
The transaction, which was implemented on 1 December 2022, sees Absa exchanging its investment management business, Absa Investments, for a stake in Sanlam Investment Holdings.
Absa Investments comprises Absa Asset Management, Absa Alternative Asset Management, Absa Fund Managers and Absa Multi-Management.
The conclusion of the transaction significantly strengthens Sanlam Investment Holdings’ offering through enhanced scale, broader distribution reach, and a bigger range of investment solutions.
It also enhances its position as one of South Africa’s largest black-owned asset managers.
Absa has also entered into a 10-year distribution agreement with Sanlam Investment Holdings.
The deal will use Sanlam and Absa’s distribution networks which significantly broadens market reach for the new Sanlam Investment Holdings.