Merrill Lynch has offloaded its South African private client business in Cape Town to Investec, and its Johannesburg and Durban operations to Sanlam Private Investments.
Both transactions do not include the firm's corporate and institutional businesses in South Africa. Terms of the deals have not been disclosed.
The Sanlam transaction represents approximately 75% of Merrill Lynch's private client asset management and stockbroking business in South Africa. It follows the launch of SPI just over two years ago and the acquisition of the South African private client division of ABN Amro late last year.
Angus Samuels, Sanlam Investment Management, CEO, says: "This transaction confirms our stated objective of building a substantial presence in the South African high-net-worth market. It forms an excellent fit with our existing operations and provides an additional client base in both Johannesburg and Durban."
Michael Marks, chairman of Merrill Lynch's international private client group (IPCG) and Kelly Martin, president of IPCG, comment: "After a thorough review of the business, we believe the sale of this part of the business to Investec and Sanlam represents the best way forward for our clients, employees and shareholders."