This archive report was first published on 3 January 2020.
January 3, 2020, marked a significant setback for Bob Diamond's plans to scale down Atlas Mara's operations in Africa. The company's proposed takeover deal with Kenya's Equity Group Holdings, which would have seen Atlas Mara exit four African countries, has expired.
According to a statement from Equity Group, the preliminary agreement signed in April had lapsed, and the parties were yet to sign a detailed pact. The deal would have given Atlas Mara a 6.3 per cent stake in Equity Group in exchange for the units.
Despite the expiration of the initial agreement, Atlas Mara remains committed to reaching a deal with Equity Group. In a separate statement, the company said, "While there is no assurance that the potential transaction will be concluded on the terms previously announced, the parties continue to be engaged in discussions, with the objective to reach mutually-acceptable terms as soon as practicable in early 2020."
The proposed deal would mark a significant change in strategy for Atlas Mara, which has faced challenges in Africa due to misjudging the caliber of competition and overpaying for acquisitions. If the deal goes ahead, Atlas Mara would be left with operations in Nigeria, Botswana, and Zimbabwe, after exiting its businesses in Rwanda, Tanzania, Zambia, and Mozambique.
