The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

South Africa - Too many banks, too few deals

    Headline: South Africa - Too many banks, too few deals
Source: Euromoney
Date: March 2000
Author: Richard Stovin-Bradford

South Africa's largest companies have switched to using international investment banking advisers. Now local South African merchant banks, many set up in recent years by entrepreneurs, find themselves forced into a frenzy of mergers and acquisitions to fight off these foreign entrants into their market. Richard Stovin-Bradford reports

Until the early nineties, the investment banking business in South Africa was divided between established local names such as FirstCorp, the former merchant banking arm of First National Bank (FNB), Standard Merchant Bank, UAL Merchant Bank, Rand Merchant Bank, Investec, the Board of Executors (BoE) and a host of stockbrokers.

Few members of this cozy coterie anticipated the shakedown they would witness when South Africa was suddenly reintroduced to the global community following the country's first free elections in 1994. Hot on the heels of these elections came an invasion of foreign investment banks. They quickly snapped up local stockbrokers or formed alliances that were often precursors to outright acquisitions.

Alan Hartdegen, banking analyst at ING Barings Southern Africa, says: "Local banks used to dominate top-tier corporate advisory work until the leading international banks arrived with their massive balance sheets, strong brands, global distribution and research capabilities and bundled the locals out of this segment."

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree