Investec will take control of Fedsure's financial services and insurance businesses on March 31, as part of its ZAR5.75bn (£501m) deal to acquire the South Africa based financial services group.
According to Stephen Koseff, Investec's chief executive, control over Fedsure businesses should be finalised by the end of the month, subject to regulatory and shareholder approval.
The acquisition and integration of Fedsure's asset management division with Investec's was one of the main drivers behind the deal, Koseff said.
Koseff added: Acquiring Fedsure brings Investec Asset Management's total domestic funds under management to ZAR115bn (£10bn), an increase of ZAR35bn (£3bn). The new assets to manage in international funds will bolster Investec's position as South Africa’s only global fund manager.
Investec also said that as the Investec group infrastructure will, over time, fulfil central and head office functions for each of the business units, the Fedsure head office will be rationalised.
The Investec deal to takeover Fedsure was announced in November last year. Following a separate agreement to the takeover deal, Investec Asset Management has managed all of Fedsure's assets since March 1. Koseff said that this was agreed to prevent damage to the business, during the period in which the acquisition deal would be delayed due to regulatory issues.
Additionally, Investec plans to sell off all non core business activities. Fedsure's individual life assurance business and the risk component of the employee benefits operations will be outsourced, according to Koseff. He also added that Investec was currently negotiating with Capital Alliance to take over these businesses.
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