Home loan giant

The merger, which is expected to be approved by PA Group shareholders at their July 2 meeting, will result in the creation of "PA BetterBond". With a staff complement of 300 and the ability to generate up to R1,2 billion worth of mortgage business a month or some R14 billion worth a year, the company will secure at least 20% of the South African home loan market.

Coming at a time of consolidation within the mortgage origination industry, PA BetterBond represents a good "cultural and business" fit, where the compatibility and quality of the senior management is high and little business overlap exists. Current BetterBond MD Rudi Botha will head the new company.

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