• Saturday, May 18, 2024
businessday logo

BusinessDay

Access Bank to acquire second Kenyan bank in 5 years

Access Bank, Mastercard move to enhance cross-border transactions

Access Bank, a Nigerian multinational commercial bank, has decided to expand its horizon to East Africa by acquiring the National Bank of Kenya from the KCB Group.

This was announced by the Access Holdings’ secretary, Sunday Ekwochi on Wednesday after approvals from the central banks of Kenya and Nigeria.

According to the statement, Access bank acquired a Keyan bank for the second time in five years after purchasing a Transnational Bank Limited in 2019.

“Access Holdings Plc today announces that its flagship subsidiary, Access Bank Plc has entered into a binding agreement with Kenyan-based KCB Group Plc for the acquisition of the entire issued share capital of National Bank of Kenya Limited from KCB,” the statement said.

It added that the Transaction is in furtherance of the Bank’s African expansion strategy and will reposition it as a stronger and significant player in the Kenyan market while serving as a regional hub for our East African firm.

“The parties will be working together in the coming months to fulfil the conditions precedent relating to the Transaction, which include the regulatory approvals of the Central Bank of Nigeria and the Central Bank of Kenya,” the statement said.

“Sequel to the completion of the Transaction, the Target would be combined with Access Bank Kenya Plc to create an enlarged franchise in the pursuit of our strategic objective for the Kenyan and East African markets.”

Bolaji Agbede, acting group CEO of Access Holdings Plc, said, “This proposed acquisition marks a significant step in the execution of our five-year strategic plan aimed at positioning the Bank as Africa’s Gateway to the World.”

She added that the deal with NBK, a strong and well-known bank in Kenya with a balance sheet in excess of US$1.1 billion, presents a compelling opportunity to scale up our growth in the East African market.

“We remain confident that our investments towards diversifying and strengthening the Bank’s long-term earnings profile will deliver significant value for our shareholders, customers, and wider stakeholder groups,” she added.