Linklaters and Slaughter and May are advising on HSBC's proposed acquisition of a controlling stake in South Africa's Nedbank, a deal which could be worth up to R49.9bn (£4.4bn).

Linklaters is acting for HSBC on its exclusive talks with Nedbank majority investor Old Mutual, with the magic circle firm's team led by corporate partner Robert Cleaver. Old Mutual currently holds a stake of approximately 52% in Nedbank.

HSBC, which is aiming to significantly extend its South African operations with the deal, has also instructed South African firm Webber Wentzel, which is fielding a team led by M&A co-head Christo Els.

Meanwhile, Slaughters is working alongside South African firm Bowman Gilfillan to advise Old Mutual.

The Slaughters team is being led by corporate partners Glen James and Richard Smith, while Bowman corporate partner Ezra Davids is providing South African law advice.

Smith commented: "This is an important deal, both strategically and in terms of our longstanding relationship with Old Mutual."

HSBC faces a number of regulatory hurdles before the deal can be confirmed, with the South African Government tightly controlling the ownership of financial institutions.

Last year Norton Rose took a major role for HSBC on the bank's £12.5bn rights issue, a deal which saw Linklaters advise the underwriters JPMorgan and Goldman Sachs.