E*TRADE, E-data to Create E*TRADE Africa
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E*TRADE Group Inc. Monday broke into unchartered territory for the global brokerage player, becoming one of the first big-name online trading services to enter Africa.
E*TRADE announced a joint venture deal with E-data Holdings Ltd. to establish E*TRADE Africa. E*TRADE will control the majority interest of the company, which will be capitalized with $15 million.
E*TRADE Africa will begin its roll-out with the development of E*TRADE South Africa. E-data will support the new subsidiary with the acquisition of South African securities and banking company Brait Securities.
E*TRADE (EGRP) points to South Africa's 1.2 million strong online population, a figure which has doubled every year since 1994, as a motivator for the new expansion. Online trading is not new to the region, with five new contenders entering the market in the last six months.
E-data is known for establishing an online platform for information on South African corporations.
E*TRADE's efforts for a cross-border trading service may be bungled by regulatory obstacles with its Telebanc acquisition, but E*TRADE's recent maneuvers -- investing in a pan-European exchange and consolidating of its subsidiaries, among the tactics -- may still keep its international empire on track.