BNP Paribas hires Barclays to sell South African financial unit RCS

BNP Paribas SA hired Barclays to sell South African financial-services business RCS as part of a wider scaling back on the continent, according to people familiar with the matter.

The Paris-based lender started a formal process to dispose of the credit and financial-services provider that operates across South Africa, Namibia and Botswana, said the people, who asked not to be identified as the plans are still private.

A spokeswoman for BNP Paribas declined to comment. Barclays declined to comment.

The deal is part of the French bank’s plan to exit certain African units, said the people, as the company focuses on expanding its European and Asian operations.

BNP sold a majority stake in its Ivory Coast business to the country’s government last month and offloaded a lender in Senegal in July. The group has also exited units in nations including Guinea, Burkina Faso and Mali, and the bank said previously it was reviewing “certain peripheral locations”.

RCS, founded 23 years ago, offers clients store cards, loans and insurance policies, according to its website. BNP bought RCS for R2.65 billion from the Standard Bank Group and clothing retailer Foschini Group eight years ago.

Offers for RCS are anticipated within the next few weeks, the people said.  – bloomberg