Reported by: banking|Updated: December 5, 2017
FirstRand Bank said it has agreed to buy British bank Aldermore Group. Aldermore’s board had approved such a merger. FirstRand is offering 1.1 billion pounds for the bank. The acquisition is expected to help the South African bank to expand beyond the country as its market is slowing. Aldermore is among a group of U.K. banks seeking to challenge the dominance of the country’s large, which control as much as 80% of the market. On the other hand, FirstRand is facing increased competition from smaller banks and financial-technology startups in South Africa. FirstRand said it will create a new division for its UK operations that will include both Aldermore and FirstRand’s auto-finance business MotoNovo.