HSBC Holdings may bid for South Africa's Nedbank, a potential $4.4 billion deal that would give Europe's largest bank a bigger profile in fast-growing Africa.

Buying a majority stake of South Africa's fourth-largest lender would bulk up HSBC's presence in Africa's top economy and give it a wider platform for expansion on the growing continent.

Old Mutual, the Anglo-South African insurer that has a majority stake in Nedbank, has been under pressure from some investors to review its sprawling structure. While Old Mutual is not in talks with potential buyers now, HSBC has appointed investment bank Lazard to advise on the possible takeover, reports said.

But a potential deal could face resistance from South African regulators, who may be wary of another bank falling under foreign control and would want to keep proceeds from a deal at home.

'I think that selling Nedbank will be part of resolving (Old Mutual's) capital issues,' said Tony Silverman, an analyst at S&P Equity Research in London.

Two of South Africa's biggest banks already have significant foreign ownership and analysts have said the government may not be keen to allow a third.

Absa is majority-owned by Britain's Barclays, while Standard Bank is 20 per cent owned by the Industrial and Commercial bank of China.-Reuters