When Old Mutual concluded its R7,2bn empowerment deal in 2005, many saw this as an indication that corporate blue chips and multinationals were embracing BEE. It sold 13,5% of its SA operations to black-owned Wiphold and Brimstone in a deal that also benefited 500 000 South Africans. Last year, Old Mutual fell victim to the global negative sentiment towards financial services companies. The result: concern that its BEE deal was being blown out of the water, much to its major BEE partners' dismay. Despite the tough financial market, Old Mutual's private equity division recently purchased 44% of industrial-minerals company Idwala Industrial, in partnership with Ethos and Tiso Group.
