French bank BNP Paribas, through its subsidiary BNP Paribas Personal Finance, has entered into a deal with The Foschini Group and Standard Bank to buy 100% stake in RCS, a South Africa-based provider of loans and retail credit cards.
RCS is 55% owned by Foschini and the remainder by Standard Bank.
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The transaction, which is expected to be completed by September 2014, is part of BNP’s international growth strategy.
BNP Paribas Personal Finance head, Thierry Laborde, said the potential for growth in South Africa combined with the quality of RCS management allows them to consider with confidence their entry into the South African market.
Foschini plans to use the proceeds from the sale of its 55% stake in RCS to repurchase its own shares.
Meanwhile, Standard Bank personal and business banking head, Peter Schlebusch, said this is a great deal for Standard Bank as it will release additional capital, which they will look to invest in their operations across the African continent.
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