The US banking giant HSBC has announced that it is involved in talks to buy a controlling stake of 70% of the fourth largest bank of South Africa, Nedbank.

An Anglo-South African insurance company Old Mutual, the current owner of the stake has confirmed that the talks are taking place between both the parties. If the bid completes successfully then the US bank HSBC will own 70% of the Nedbank in exchange of 6.8 billion dollars.

Nedbank has also said it is very happy and excited for the deal as HSBC is a very attractive banking partner at any place in the world. According to the officials of HSBC, this deal would allow HSBC to enhance its presence in South Africa and it would also fulfill the ambition of the bank to expand its business in the emerging markets across the world.

HSBC has reported doubled profits in the first six months as it reported pre-tax profits of 11.1 billion dollars. According to the bank it has seen profits in its every business region but it saw a loss of 80 million dollars only in North America.