BANKING
Portugal considers Mercantile Bank short list
The sale of Mercantile and other banking assets globally was a European Central Bank-imposed condition of a restructured loan
Mercantile Bank may soon be in South African hands, as the Portuguese government — the owner of Mercantile’s parent, Caixa Geral de Depósitos — considers a short list of four preferred bidders. "The sale is going full steam ahead," Mercantile CEO Karl Kumbier told Business Day on Thursday, but he would not comment on the bidders. Given the Reserve Bank’s preference for a "shareholder of reference", the buyer is likely to have deep pockets. However, other banks may be precluded due to competition issues. Caixa, which has been Mercantile’s sole shareholder since it delisted in 2012, is Portugal’s largest bank by assets. The sale of Mercantile and other banking assets globally was a European Central Bank-imposed condition of a restructured loan. Four bidders The Portuguese council of ministers would consider 18 nonbinding offers, Kumbier said. "Four bidders have been supported by our board and the board of Caixa," said the CEO. "In two weeks’ time, the government will approve a shortli...
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