Capitec Limited, a South African financial services group, co-founded by billionaire banker Michiel Le Roux, has secured approval from Competition Commission to sell Capitec Rental Finance to Sasfin Capital for R201 million ($12.2 million), advancing a deal that will move the equipment-financing business into a group with an established focus on asset-backed rental solutions.

Deal follows mercantile acquisition

Capitec acquired the rental finance business in 2019 as part of its purchase of Mercantile Bank. The lender later determined that the unit was not strategic to its broader priorities, according to its interim financial statements for the period ended Aug. 30, released Sept. 30. The sale will allow the business to join Sunlyn.

Capitec said integrating the rental finance operation with Sunlyn would place the business under a platform better positioned to maximize its value. The transaction also marks another step in the banking group’s effort to sharpen its portfolio while expanding its focus beyond traditional banking income and services.

Sasfin expands equipment finance

Sasfin Capital, through its subsidiaries, provides asset-backed equipment rental finance to corporate and small and medium-sized enterprise customers. Its financing covers renewable-energy systems, energy-efficient equipment, technology and other essential business assets, giving the group an established platform for the acquired operation.

The Competition Commission said it found that the proposed transaction was unlikely to substantially lessen or prevent competition in any relevant market. The parties also agreed to a moratorium on merger-related retrenchments for a specified period to address employment concerns associated with the deal.

A business built for SMEs

Capitec Rental Finance was established in 2011 and provides equipment rental and flexible funding solutions to small and medium-sized businesses. Its financing covers office automation, medical equipment, information technology and renewable-energy assets, with structures that can treat payments as operating expenses rather than capital expenditure.

The business joined Capitec through the 2019 Mercantile Bank acquisition. Its sale reflects Capitec’s decision to focus resources on operations that fit more closely with its evolving strategy, while giving the rental finance unit a new owner with a dedicated asset-finance platform.

Capitec broadens its reach

Founded in 2001 by Michiel Le Roux, Jannie Mouton and Riaan Stassen, Capitec has grown into one of South Africa’s largest retail banking groups. The lender serves mass-market customers through branches and digital channels, offering banking, lending, credit and savings products across its expanding customer base.

The group has also updated its name to Capitec Limited as it broadens its focus on technology, nonbanking income and customer solutions. The shift reflects an expanding financial-services model as the company seeks to build businesses beyond its traditional retail banking operations.

Sasfin completes strategic shift

Sasfin Capital is now focused on independent financial services, asset finance and rental solutions following Sasfin’s exit from traditional banking. The group delisted from the Johannesburg Stock Exchange in December 2024 and later voluntarily relinquished its banking license on June 30, 2026.

The acquisition of Capitec Rental Finance adds an established equipment-financing operation to Sasfin Capital’s portfolio. For Capitec, the transaction provides an exit from a noncore business while transferring the unit to a group whose existing operations are closely aligned with equipment rental and asset-backed finance.