Access Bank plans to acquire the National Bank of Kenya from the KCB Group, marking its second purchase of a Kenyan bank in less than five years.
After buying Transnational Bank Limited. in 2019, this is the Nigerian lender’s second acquisition in Kenya.
According to a statement filed on the Nigerian Exchange Limited on Wednesday by Access Holdings’ Secretary, Sunday Ekwochi, the completion of the deal depends on getting regulatory approvals from the central banks of Kenya and Nigeria.
KCB Group’s CEO, Paul Russo, informed that Access Bank will acquire the entire stake, a move he sees as advantageous for NBK’s future, as per Tech Cabal.
Access Holdings Plc (“Access Holdings”) has revealed in a statement that its subsidiary, Access Bank Plc (“Access Bank” or “the Bank”), has entered into a binding agreement with Kenyan-based KCB Group Plc (“KCB”) for the acquisition of the entire issued share capital of National Bank of Kenya Limited (“NBK” or ‘the Target’’) from KCB.
Their statement stated, “The Transaction is in line with the Bank’s African expansion strategy and will strengthen its position in the Kenyan market while also serving as a regional hub for our East African bloc with a reinforced balance sheet.
“The parties will work together in the coming months to meet the conditions precedent for the Transaction, including the regulatory approvals of the Central Bank of Nigeria and the Central Bank of Kenya.
“Following the completion of the Transaction, the Target will be merged with Access Bank Kenya Plc, expanding their presence to align with their strategic goals for the Kenyan and East African markets.”
Ms. Bolaji Agbede, Acting Group Chief Executive Officer of Access Holdings Plc, commented, “This proposed acquisition is a significant step in our five-year strategic plan aimed at positioning the Bank as Africa’s Gateway to the World.
“The deal with NBK, a historically strong and well-known bank in Kenya with a balance sheet exceeding US$1.1 billion, presents a great opportunity to expand our growth in the East African market.
We are confident that our investments in diversifying and strengthening the Bank’s long-term earnings profile will bring considerable value for our shareholders, customers, and broader stakeholder groups.”
