HSBC will buy up to 70% of South Africa's Nedbank, in a potential $6.8-billion deal that would give Europe's largest lender a presence in Africa's largest economy and a gateway to the fast-growing continent.

HSBC and Anglo-South African insurer Old Mutual, which owns a controlling stake in Nedbank, said in separate statements on Monday they were in exclusive talks about the deal.

Old Mutual said HSBC could acquire up to 70% of South Africa's fourth-largest bank, a deal that could be worth about R50-billion, given Nedbank's current market value.

Reported by Reuters