Sanlam and Absa combine their investment management businesses

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.