Statement re Nedcor Ltd

Old Mutual PLC
18 May 2000

                               
                        OLD MUTUAL plc
                               
  Nedcor Ltd wins the bid for South African FBC Fidelity Bank

Old  Mutual  plc announces that its banking subsidiary  Nedcor
Ltd.  has today been selected by the Curator of Banks in South
Africa to acquire control of FBC Fidelity Bank (FBC Fidelity).
Under   a  scheme  of  arrangement  agreed  with  the   former
shareholders  Nedcor will inject approximately R500million  of
new  capital and merge FBC Fidelity with its own Peoples  Bank
to  form South Africa's biggest empowerment bank.  The  merger
will  consolidate Nedcor's position as one of the  pre-eminent
lenders  to  the  underbanked consumer and  emerging  business
markets.

The  purchase price will be the positive net asset value (NAV)
of  FBC  Fidelity at the effective date of acquisition,  after
providing for Nedcor's assessment of the value of advances and
loans  and the cost of the merger with Peoples Bank.  A  final
NAV  (with a reassessment of provisions at the effective date)
will  be  determined as at 30 June 2001. If the final  NAV  is
positive, FBC Fidelity Bank Holdings Ltd (the current  holding
company of FBC Fidelity) will receive ordinary shares  in  the
merged  Peoples Bank/FBC. If the final NAV is negative, Nedcor
will  draw  upon subordinated loans to restore the  NAV  to  a
neutral position.

Nedcor  has been given assurance by the appropriate regulators
that  the  FBC  Fidelity  transaction will  not  affect  their
assessment  of  Nedcor's proposed Stanbic transaction  in  any
way.  The  merged  bank will have strong  management  capacity
taken  from  both  its existing resources  and  those  of  its
empowerment  shareholders, and will in no way affect  Nedcor's
ability  to  manage  the  integration of  the  merged  Nedcor/
Stanbic entity.

The  FBC  transaction is subject to the approval of creditors,
the High Court, and other regulatory bodies.

Richard Laubscher, Nedcor chief executive, said:

'Our   due  diligence  shows  that  FBC  Fidelity  is  trading
profitably  and  the acquisition is based  on  sound  business
principles. Nedcor is well capitalised with a capital adequacy
ratio  of 12% which exceeds both current legislation  and  the
anticipated  new capital adequacy requirements.  Nedcor  would
therefore  not  require any capital raising for  its  existing
businesses or for this transaction.'


                                                   18 May 2000

Enquiries

Old Mutual                               Tel: [phone]
James Poole

College Hill                             Tel: [phone]
Nicholas Williams
Tony Friend

College Hill, South Africa                Tel: [phone]
Graham Fiford





Notes to editors

FBC Fidelity Bank

The  bank's parent company is FBC Fidelity Bank Holdings  Ltd.
The  bank  was formed in August 1998 when Future  Bank  merged
with Fidelity Bank. After experiencing liquidity problems, the
bank  was  put under curatorship in October 1999.  The  bank's
retail  focus is on the lower- and middle-income market  where
it holds a strong position in home loans and microlending with
over 110 000 customers.