Standard Chartered has entered into an agreement to acquire Barclays PLC’s custody business in Tanzania and seven other African countrues. As part of the transaction, Standard Chartered Tanzania has agreed to acquire the Tanzanian part of Barclays' business.

The transaction is expected to be completed this year, subject to regulatory approvals and other customary conditions.

The African custody business forms a key part of Standard Chartered’s build-out of international custodian services, alongside existing capability in Asia and the Middle East.

The acquisition adds direct custody capabilities in eight African markets (Botswana, Ghana, Kenya, Mauritius, Tanzania, Uganda, Zambia and Zimbabwe) and indirect capabilities in a further eight markets (Egypt, Cote d’Ivoire, Malawi, Morocco, Namibia, Nigeria, Tunisia and South Africa) provided through a network of third party sub-custodians via an operations hub in Mauritius.

The new business will strengthen Standard Chartered’s regional product offering for both international and regional businesses, strengthening client relationships, whilst providing an additional source of liquidity to the Group.

Commenting on the deal, Karen Fawcett, Group Head of Transaction Banking, said: “We are very pleased to have secured the acquisition of Barclays’ African custody business. This deal will ensure that we can develop our custody capabilities rapidly and seamlessly in Africa, one of our key regions. It will also enable us to enhance our Wholesale Banking proposition and deepen our relationships with clients, meeting their increasing requirements for broader regional services.”

Mike Hart, CEO, Africa, said: “We continue to seize the opportunities that are presenting themselves in Africa. Following the bank’s publication of record results in Africa in 2009, we remain confident in our strategy to deliver long-term, sustainable growth.”

The value of the deal, that would see Standard Chartered take over all Barclays custodial business in Africa, was not mentioned in the announcement.

But a statement from Standard Chartered PLC indicated that the gross asset value of the transaction was approximately $3 million and customer assets under custody were approximately $6.2 billion