Standard Chartered Plc will dispose of its Zimbabwe unit to FBC Holdings Ltd (FBC) following agreement on Thursday but the deal will be subject to approval by the regulatory authorities, including the Competition and Tariff Commission (CTC) and the Reserve Bank of Zimbabwe (RBZ).
The development marks the beginning of Standard Chartered Plc’s exit from seven African and Middle East markets as part of its new strategy to streamline operations and focus on viable markets.
The London-headquartered bank announced last year that it would leave Angola, Cameroon, Gambia, Sierra Leone and Zimbabwe, in addition to Jordan and Lebanon in the Middle East.
It is reported that Standard Chartered will transfer 100 percent of its shareholding in the unit, including the custodial services business, to FBC.
“We are pleased to sign this agreement today and to have been selected by Standard Chartered Bank as the preferred buyer. Standard Chartered is a leading regional and international bank with more than  years of experience globally,” said Dr John Mushayavanhu Group Chief Executive of FBC Holdings Limited.
“The combined strengths of the two institutions will enable us to better respond to the ever-changing requirements of our clients.”
As part of the agreement, FBCH will also acquire the economic interest in Africa Enterprise Network Trust whose main asset is a 20.7% shareholding in Mashonaland Holdings.
FBCH will continue to employ all of Standard Chartered Bank Zimbabwe’s employees. The two banks will work closely in the coming months to provide a seamless transition for its clients and staff.
After 130 years in the country, Standard Chattered becomes the latest British institution to leave Zimbabwe after Barclays Bank left in 2017.