Access Bank will purchase the National Bank of Kenya from the KCB Group, marking its second acquisition of a Kenyan bank in the last five years.
After acquiring Transnational Bank Limited in 2019, this is the Nigerian lender’s second purchase in Kenya.
Sunday Ekwochi, Secretary of Access Holdings, revealed in a statement posted on the Nigerian Exchange Limited on Wednesday that the deal’s completion is reliant on regulatory clearances from Kenya’s and Nigeria’s central banks.
According to Tech Cabal, KCB Group’s CEO, Paul Russo, has revealed that Access Bank would purchase the whole share in a deal he believes will benefit NBK’s future.
The statement reads:
“Access Holdings Plc (“Access Holdings”) today announces that its flagship 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. (‘the Transaction’) KCB is also the holding company of KCB Bank Ltd, Kenya’s largest commercial bank.”
“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 whilst serving as a regional hub for our East African bloc anchored by a solidified balance sheet.
“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.
“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.”
cc: Punch Ng
