The move, which was announced in October last year, allows Absa to handover its investment management unit, called Absa Investments, for a stake in Sanlam Investment (SIH).
At the time of announcing the deal, Absa stated that it would take around 17.5% stake in SIH.
Absa Investments includes a number of businesses such as Absa Asset Management, Absa Alternative Asset Management, Absa Fund Managers and Absa Multi-Management.
The newly closed deal helps SIH to expand its business with improved scale as well as extended distribution footprint and new investment products.
It also allows SIH to becomes one of the biggest black-owned asset managers in South Africa.
In addition, Absa reached a ten-year distribution deal with SIH.
The deal will see the combined business will use the distribution networks of both Sanlam and Absa.
Sanlam investment group CEO Carl Roothman said: “Sanlam and Absa clients will gain from the enhanced investment offering. This partnership will allow us to deliver investment solutions that sustain future generations.”
Roothman added: “Scale is critical in driving the product and service innovation required to meet clients’ financial goals.
“Combined capabilities, expertise and commitment to our clients will position us to be the preferred investment solutions provider in South Africa.
“Our promise is to serve our customers with pride and deliver world-class client experience and solutions.”