The news comes as Sanlam is looking for opportunities to expand beyond South Africa’s struggling economy.
Rabat – The South African insurance giant, the Sanlam Group, has just announced its acquisition of a 22.8% stake of Saham Assurance Maroc, for a price of $137.1 million (MAD 1.2 billion).
The acquisition comes after Sanlam announced its move to search for opportunities elsewhere in Africa. Emerging from the movie is the suggestion that as South Africa’s tough market conditions have been limiting the company’s growth. Following the acquisition, the South African company will increase its stake in the Moroccan insurance company from 61.7% to 84.5%.
The two businesses have agreed to strengthen their partnership to support the South African giant in its economic and commercial ventures in Morocco.
Of note, however, is that the transaction still remains subject to regulatory authorizations from the appropriate Moroccan and South African authorities.
Heinie Werth, the CEO of Sanlam Emerging Markets, said: “This transaction strengthens our long-standing commitment to the Moroccan market. We look forward to consolidating our roots and continuing to offer quality of service and added value to our customers and partners.”
He added, “Morocco and more generally North Africa as well as West Africa remain key markets for Sanlam and this operation is part of our African diversification strategy.”
Said Alj, the Chairman of Sanam Holding, the organization behind the Moroccan insurance company, explained that “SAHAM Assurance Maroc represents an important part of Sanlam’s portfolio and we will mutually continue to develop it, while helping to strengthen the economic ties between South Africa and the Kingdom of Morocco.”
In 2018, Sanlam sealed a $1.1 billion deal to buy the remaining stake in Sanam Holding, expanding its presence to 33 countries across the African continent. The South African company originally acquired a 30% stake in SAHAM Finances in 2016, further increasing its stake to 46.6% the following year.
Sanlam was established in 1918, starting out as a life insurance company in South Africa.