Sanlam Life Insurance, a subsidiary of Sanlam, a leading insurer partly owned by Africa's first Black billionaire Patrice Motsepe, has secured the Competition Tribunal's approval for its R6.5 billion ($365 million) acquisition of Assupol Holdings. This approval, granted with an employment-related condition, represents an advancement in Sanlam's strategic expansion.
Sanlam's acquisition, first revealed in February , is slated for completion by October 2024. The integration of Assupol into Sanlam's retail mass cluster-which includes Sanlam Sky, Safrican, and a joint venture with Capitec-aims to enhance its service capabilities within South Africa's financial sector.
Strategic move amidst Bidvest and IFC divestmentThis transaction comes after Bidvest Proprietary Limited and the International Finance Corporation (IFC)-which hold 46.02 percent and 19.41 percent stakes in Assupol, respectively-announced their intention to divest following a decade-long investment. Both entities have committed to supporting the resolutions necessary for executing the scheme of the arrangement, facilitating Sanlam's acquisition.
Upon the deal's finalization, Sanlam will assume full control of Assupol, a notable shift in South Africa's insurance industry. Sanlam, founded in 1918 and boasting a market capitalization of over $10.1 billion on the Johannesburg Stock Exchange, is a key name in the financial sector. Patrice Motsepe, Africa's first Black billionaire, holds a 7.8-percent stake in Sanlam through his investment vehicle, Ubuntu-Botho Investments, and serves as the deputy chairman.
