SOUTH AFRICA - The merger between financial services groups Escher Group and m Cubed Capital Holdings has been given the green light by South Africa's Competition Commission.
The merger is now subject only to the approval of shareholders who are set to vote on 11 September 2001.
Once the deal is sealed Escher will be renamed m Cubed Holdings Limited. The new group will have combined assets under management of over R30bn (with R40bn in assets under administration) making it the largest independent, staff-controlled local listed multi-manager.
The merger means that Escher gains m Cubed’s niche in the retail market where the latter has focused on the larger client segregated fund market and has a number of strategic alliances. m Cubed will have access to Escher’s exposure to the South African mid-size pension fund market.
Critical mass and the associated economies of scale, together with the merged pool of expertise, products and experience will present the new group with exciting prospects for continued growth within the financial services sector,” said John Storey, managing director of m Cubed and MD of the merged group.
By Madhu Kalia
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