Banking group Standard Bank and Troika Dialog Group announced the receipt of an approval from the regulatory authorities, including Russian, South African and British, for the formation of a strategic alliance, Troika Dialog’s press service reported.
Under the terms of the alliance, Standard Bank is to grab a 33% interest in Troika Dialog, assigning in turn its 100% stake in its Russian subsidiary commercial bank (CJSC Standard Bank) to Troika Dialog, and also all its Russian assets. The goal of the alliance is to establish Russia’s leading financial services provider with a wide geographical coverage and a range of products.
“The transaction will push up the market caps of both companies and their customers will have additional opportunities for the execution of their business targets and objectives. In Russia the companies will carry on business under the single brand of Troika Dialog and as of today Standard Bank employees will begin to work at Troika Dialog’s office premises, the press release pointed out.
The approval from the regulatory authorities has put an end to one of the stages geared towards integrating two business processes which got under way after the announcement of the conclusion of the strategic alliance. “Company management focused primary attention on rolling out the synergetic effect arising out of the integration of complimentary businesses and finding new promising areas of business. Committees for strategic and operating activities have been formed for this purpose," the press release emphasized.
Commenting on this event Jacko Maree, chief executive officer of Standard Bank, pointed out that “entering into an alliance will allow us to offer clients of our companies a unique product range. Combining local expertise amassed by Troika Dialog and Standard Bank’s global outreach will allow us not only to establish one of the largest financial institutions in Russia, but also to become a center for investment and information flows on the developing and developed markets. Our global ties, a wide product mix and unique experience will twofold contribute to business expansion of our clients”.
Ruben Vardanyan, Troika Dialog’s board chairman, emphasized that “the Troika Dialog-Standard Bank alliance has become the result of our long and successful cooperation. The partnership will lead to the foundation of a financial institution of the future that is able to efficiently carry on business on changing global markets. The alliance opens up a world of new prospects for us and today we have an excellent chance to expand the range of professional experience. I am very pleased that our team is focused on organic integration, the primary goal of which is a customer-oriented business model.
In line with the organizational structure, Ruben Vardanyan will take a BoD seat at Standard Bank Plc., while Rob Late and David Duffey will enter Troika Dialog’s management team. Together with other executives they will form the strategic vision of the partnership from the angle of a new global financial architecture, the press service pointed out.
