(Ecofin Agency) - At the end of March 2018, the South African group Sanlam announced it has reached an agreement to acquire the rest of Moroccan group SAHAM Finances for $1 billion. A transaction whose completion is subject to prior approvals including that of the Moroccan Insurance and Social Security Supervisory Authority (ACAPS). However, according to information reported by Le Desk, this body may not approve the acquisition.
“The regulator should give a rejection, arguing the country’s higher interests in the face of the entryism of Pretoria (ed: South African capital, headquarters of Sanlam) and the continental implications of such a transaction,” Le Desk indicates.
If so, it will break Sanlam's strategy to become the undisputed Pan-African insurance leader, and its revenues boost prospects. As it increased stake in Saham Finances’ capital, the latter became a significant part of the South African group's turnover, accounting for 2.8% of turnover at the end of 2017, against 1.1% in 2016.