Summary Box: HSBC in talks to buy majority stake in South Africa’s Nedbank for $6.8 billion

Summary Box: HSBC in talks for big Nedbank stake

THE DEAL: British bank HSBC Holdings PLC is in talks with Old Mutual PLC to buy a 70 percent stake in Nedbank Group Ltd. for as much as $6.8 billion. Nedbank is South Africa’s fourth-largest banking group in terms of total assets.

WHAT’S BEHIND IT: Old Mutual says the proposed sale would be a major step toward simplifying its business. It would use proceeds to pay down debt and make new investments in South Africa.

REACTION: Analysts say regulatory clearance may be difficult, though South Africa has no rules prohibiting foreign companies from acquiring a stake of this size.