Sanlam and Absa have merged their investment management businesses in South Africa.

The transaction sees Absa exchanging its investment management business, Absa Investments, for a stake in Sanlam Investment.

Absa Investments comprises Absa Asset Management, Absa Alternative Asset Management, Absa Fund Managers and Absa Multi-Management.

The conclusion of the transaction significantly strengthens Sanlam’s offering through enhanced scale, broader distribution reach and a more holistic range of investment solutions. This further enhances Sanlam’s position as one of South Africa’s largest black-owned asset managers.

Absa has also entered into a 10-year distribution agreement with Sanlam, meaning the expanded operations will utilise the distribution networks of both Sanlam and Absa, which significantly broadens market reach for the enlarged SIH.

Sanlam Investment Group CEO, Carl Roothman, said: “We are excited that the agreement to integrate the investment management businesses of Sanlam and Absa has been concluded. Sanlam and Absa clients will gain from the enhanced investment offering. This partnership will allow us to deliver investment solutions that sustain future generations.”

“Scale is critical in driving the product and service innovation required to meet clients’ financial goals. Combined capabilities, expertise and commitment to our clients will position us to be the preferred investment solutions provider in South Africa. Our promise is to serve our customers with pride and deliver world-class client experience and solutions,” Roothman said.

Absa Group Financial Director, Jason Quinn, said: “We are delighted with the successful conclusion of the transaction, which delivers the scale, capabilities and transformation which we view as essential to achieving strong and sustainable growth. Absa remains committed to the investment management sector through its shareholding in the combined entity and a 10-year distribution agreement, which will help us to offer an enhanced customer value proposition by creating a deeper, broader range of investment solutions for our clients.”