Technical issues could yet upset the planned deal between HSBC and Nedbank, with South Africa’s exchange controls proving particularly sticky, say some observers. Old Mutual South Africa, the company expected to receive the $8 billion paid by HSBC, has said that it intends to use some £1.5 billion of the money to pay down international debt. This would require it to export the funds, something not allowed by the country’s exchange control procedures.
Structures will need to be bypassed, says Emilio Pera, a partner at Ernst & Young.
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