Harare – Diversified financial services group, Old Mutual Zimbabwe in a notice to its members on Wednesday said it is planning to merge several of its business units, a move that is likely to increase the value of the firm and improve on efficiencies.

According to the notice, Directors are being authorised to take all necessary steps to merge Old Mutual Property Zimbabwe (Private) Limited and Old Mutual Real Estate Zimbabwe (Private) Limited into Old Mutual Investment Group Zimbabwe, subject to the compliance with the Estates Agents Act (Chapter 27:17) and relevant Regulations in relation to conducting the business of an Estate Agent.

Secondly, they should also take necessary steps to enable a merge between CABS and CABS Custodial Service (Private) Limited, with the latter becoming a division thereof, subject to CABS obtaining a Custodial Service Licence as provided for in the Securities and Exchange Act (Chapter 24:25), and relevant Regulations.

Additionally, the notice advised that Directors should enable the merge of Old Mutual Property Investment Corporation (Private) Limited and Old Mutual Life Assurance Company Zimbabwe Limited, with the former becoming a division thereof.

The special business will be conducted on the Group’s AGM to be held in the capital on May 9, 2019.

In the full year to December31, 2018 Old Mutual recorded a 41 percent increase in revenue to US$1,4 billion from US$991 million in 2017 due to growth in investment gains and banking interest income due to growth in investment gains and banking interest income.

Mergers happen when two businesses join together to create a single, unified company. Business owners may enter into merger negotiations for a variety of reasons, with mergers generally happening between large and small companies. A small, struggling business might become absorbed by a large conglomerate. Two large companies may join forces to become stronger.

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