Minority shareholders of South Africa's Absa Group reportedly backed a plan to buy the African operations of parent Barclays for 2.1bn dollars in new shares, according to a news report published by Reuters on Monday morning.

The news agency reported that the deal, although dilutive to minority shareholders, would be expected to give Absa greater exposure to fast-growing African markets.

According to the article, the two banks will merge the bulk of their African businesses outside of South Africa, with Barclays relinquishing direct control of eight of its operations on the continent in exchange for 129.5m new shares in Absa.

Reuters reported that Barclays has previously blocked ambitions by its subsidiary to spread further north, citing conflicts of interests.

ShareCast contacted the press teams at Barclays and Absa on Monday morning but no one was available to comment at the time of publication.

According to Barclays's website, the Barclays South Africa branch was acquired by Absa on January 1st 2006 and Barclays Group owns a 56.4% stake in the Absa Group.

Absa is listed on the Johannesburg Stock Exchange.

Barclays' share price was up 2.20% to 313.75p at 09:25.

MF

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