Barclays Bank Reported Selling S. Africa Holding to Mining Firm

Barclays Bank of Britain, which has been under heavy pressure from anti-apartheid campaigners, is selling its South African bank interests to the giant mining firm, the Anglo American Corp., informed sources said Sunday night.

The huge divestiture, a major psychological blow for South Africa’s sanctions-hit economy, will be announced at a Johannesburg news conference today, they said.

Barclays Bank of Britain owns 40.4% of Barclays Bank South Africa, the country’s second largest commercial bank, making it one of the largest foreign investors in South Africa.

Locally owned Anglo American is now the second-largest shareholder in Barclays Bank South Africa with 25% of the stock.

Barclays of Britain has 29 million shares in Barclays, South Africa with a present market value of about $280 million, stock analysts said. The sale has already been discussed with South African banking and government officials, the sources said.

Barclays’ decision follows a spate of similiar announcements by major U.S. companies. IBM, General Motors and Eastman Kodak recently said they were pulling out because of South Africa’s apartheid racial segregation policies and a business slump.