TOURVEST Financial
Services has acquired
the South African assets
of global forex provider,
Travelex, creating one of the
biggest independent foreign
exchange business in the
country.
After receiving approval
from the Competition
Commission, the deal was
concluded earlier this year.
Tourvest Financial Services
will now own 100% of
Travelex Africa, with Travelex
Limited taking ownership of
25% of Tourvest Financial
Services.
The acquisition means
that Tourvest Financial
Services will increase its
number of foreign exchange
branches in SA from 53
to 87, while the number
of annual transactions it
completes in SA is expected
to increase from 500 000
to around 860 000.
Andrew McDonic, md of
Tourvest Travel and Financial
Services, says the South
African travel-related foreign
exchange market is valued
at R25bn, excluding credit
card purchases. He points
out that the combined
Travelex and Tourvest
operation will now have a
local market share of over
20%. “This would make us
the largest independent
retail foreign exchange
provider in South Africa,” he
says.
Tourvest Financial
Services previously provided
foreign exchange in SA at
retail branches under the
American Express (Amex)
Foreign Express brand.
The brand licensing
agreement with Amex that
made this possible is due to
expire in June and won’t be
renewed. The existing Amex
Foreign Exchange branches
will be rebranded as
Travelex branches by June.
Andrew says the process of
integrating Travelex’s local
operations into Tourvest’s
systems is already under
way.
He says one of the
benefits for Tourvest will
be that it can continue to
operate under a globally
recognised brand that has
over 1 200 stores in 27
countries and employs over
9 000 people.
It will also have access to
Travelex’s global network of
foreign exchange bureaux.
Travelex, meanwhile, will
benefit from Tourvest’s
BBBEE rating. Both will be
able to make use of one
another’s areas of expertise,
enjoy increased branch
networks in South Africa,
and have high transaction
volumes.
Amex’s payment solutions
business with Nedbank in
South Africa, and its local
travel services, will remain
unchanged.
