As Bob Diamond readies Barclays Africa bid, South Africa warns on bank buyouts

Kuben Naidoo, Deputy Governor, South African Reserve Bank

South Africa raised caution over Bob Diamond’s potential offer for Barclays Plc’s local unit, with the central bank signaling that private-equity bidders for the country’s third-largest lender would face opposition from regulators.

“As a regulator we won’t be comfortable with a private-equity play for any of the banks,” Deputy Reserve Bank Governor Kuben Naidoo told reporters in response to questions in Pretoria on Tuesday, without identifying any potential companies or deals. The central bank will “look quite negatively” on a buyout because these typically involve leverage and exit strategies, and banks need long-term commitments from shareholders with deep pockets, he said.

Read more: As Diamond Readies Bid, South Africa Warns on Bank Buyouts – Bloomberg