The Banking giant, HSBC is consider to be the strong competitor to buy controlling stake of South Africa's fourth largest bank, Nedbank for £4.5 billion.

Anglo-South African insurer Old Mutual is selling its 52 percent stake in the group as a turnaround strategy after facing financial at its US and Bermudan operations.

It has also sold its US life business to US hedge fund Harbinger Capital for $350m in this month.

The group is all set to make exclusive negotiation talks with Nedbank's owner Old Mutual by this week.

HSBC is already having small business in South Africa for about 15 years.

The Chief Executive of HSBC, Michael Geoghegan is planning to increase the presence of group in emerging markets.

HSBC has faced competition from Standard Chartered, which specializes in emerging markets, for the bid for Nedbank but is considered to have left behind Standard Chartered in a race to acquire largest financial group in South Africa.

But the group requires approval from the South African authorities, which are expected to block the sale due to series of acquisitions in the country by foreign banks.