Anglo-South African financial services group Old Mutual is to split up into its four main businesses, strengthening expectations of the sale or listing of its UK asset management arm. Hayley Platt reports.
It owns more than 50 percent of South Africa's Nedbank and other businesses. But the Anglo-South African financial services group Old Mutual says its outdated complex structure is too costly and complicated to continue as it is. It plans to split itself into four separate units. Comprising emerging markets operation based in South Africa. Its UK-focused wealth unit. Its banking business. And its institutional asset management unit. SOUNDBITE (English) RABOBANK, SENIOR CURRENCY STRATEGIST, JANE FOLEY, SAYING: "They've said that this is related to the cost of the infrastructure and part of the cost of maintaining a large infrastructure is related to the new regulations in recent years. They said by splitting it up then each business faces a much more simple structure." The news came as Old Mutual posted a rise in pretax operating profit for 2015 Shares fell in morning trade. The group also announced its to close its London HQ to save 80 million pounds. But gave no details on the numbers jobs affected. The carve up one of the latest signs of volatile financial markets. Deutsche Bank now warning on the sector impact of volatile markets. Echoing similar recent statements from Cititgroup and JP Morgan.