JSE-listed diversified industrial firm, Bidvest, on Wednesday said it planned to acquire Grindrod Bank, another JSE-listed commercial bank, for an undisclosed amount.

Bidvest said the acquisition of Grinrod Bank would add balance to Bidvest’s financial services products, which is driven by a unit of Bidvest, Bidvest Bank.

The acquisition would also give the merged business good strategic positioning as an important niche financial services firm.

The completion of the proposed deal will await approval by the competition authorities. The deal would also hinge on the successful completion of a due diligence investigation into Grinrod Bank.

Bidvest Group was recently in the news for thwarting Chile’s drug-maker CFR Pharmaceutical’s move to acquire South Africa’s second biggest drug maker, Adcock Ingram, for $1.2 billion.

Bidvest, which had been in the running for the acquisition of Adcock Ingram, had upped its stake in Adcock Ingram to 34, 5 percent.

PIC, the South African government pension funds manager, which holds 21 percent of Adcock Ingram, had supported Bidvest in thwarting the takeover bid by CFR.

CFR’s bid needed the endorsement from the shareholders with 75 percent shareholding in Adcock Ingram.

After Bidvest won the tussle for Adcock Ingram, it fired Adcock Ingram chairman Khotso Mokhele and he was replaced by Bidvest chairman Brian Joffe.

Jonathan Louw, the former CEO of Adcock Ingram resigned later, prompting the Bidvest group to reconstitute the board of directors.