The Competition Tribunal has approved Capitec Bank’s acquisition of Portuguese-owned Mercantile Bank.

This allows Capitec to enter the business banking market. The Tribunal says the proposed merger does not raise any competition or public interest concerns.

Capitec currently operates as a retail bank and has had some success in penetrating the lower end of that market.

The Tribunal says Mercantile Bank provides a specialised range of secure products and services such as electronic banking, borrowing solutions, investment and insurance solutions.