Barclays has hired Deutsche Bank’s top investment banker in South Africa, an indication that the UK bank is expanding beyond its transatlantic strategy and rebuilding its presence on the African continent.
Simon Denny, who was head of corporate finance at Deutsche Bank in South Africa until December last year, has joined Barclays as co-head of banking for the country.
Barclays completed the sale of its majority stake in its African operation in July, as part of a strategic overhaul under Jes Staley, the former JPMorgan banker who took over as chief executive in October 2015.
Barclays Africa officially divorced from its parent bank in July last year, rebranding itself as Absa and launched a London operation in September. Maria Ramos, Absa’s chief executive who oversaw its separation from Barclays, stepped down in January.
Deutsche Bank scaled back its African operations after unveiling plans to cut its investment bank to focus on core areas of strength under a new strategy from chief executive Christian Sewing in May. The exit of Denny, a respected dealmaker in the region, raised eyebrows among senior bankers in Africa.
During his time at Deutsche Bank, Denny advised Steinhoff International on its $7.6bn acquisition of Pepkor, the clothing retailer, and worked for hotel and casino business Tsogo Sun when SABMiller disposed of its $1.1bn stake in the company.
The German lender has since backtracked on its African retreat, reportedly hiring around 26 investment bankers and naming Gregory Scott as its new corporate finance head for South Africa in February.
Under Staley, Barclays has championed a transatlantic strategy for its investment bank, with large operations in the UK and the US, which accounts for 50% of revenues in the division. However, more recently it has expanded beyond this, bolstering the ranks of dealmakers in continental Europe to compete more effectively with local rivals.
Barclays was looking at rebuilding its operations in South Africa as early as July last year, according to the Financial Times, and also seeking to expand in South Korea.
