HSBC is in the early stages of assessing a bid for Nedbank, part of the London-listed Old Mutual investment and banking group, and has appointed investment bank Lazard to advise it on a possible takeover deal, according to a report in Sky News.

Nedbank, in which Old Mutual owns a controlling stake, is the parent bank of South African wealth manager BoE Private Clients and Fairbairn Private Bank, which operates across the UK, the Isle of Man, Jersey and South Africa.

Rumours about a takeover of Nedbank have circulated for many months; however, there are no “live talks” taking place between Old Mutual and a potential buyer for its stake at the moment, according to the report.

Standard Chartered has been considering making an offer for Nedbank and in May hired Goldman Sachs to advise it but the process has stagnated, and likewise there is no guarantee HSBC will make a formal offer, reports the news service.

Last year Nedbank Group reported a profit for the full year of R5,412 million ($713.7 million); yesterday its share price jumped 3.88 per cent to close at R132.05 ($17.4) on the back of takeover speculation.