The National Bank of Kenya will be purchased by Access Bank from the KCB Group, marking its second purchase of a Kenyan bank in less than five years.
This is the Nigerian lender’s second acquisition in Kenya, following its acquisition of Transnational Bank Limited in 2019.
Sunday Ekwochi, the secretary of Access Holdings, stated in a statement published on the Nigerian Exchange Limited on Wednesday that the completion of the transaction is pending regulatory clearance from the central banks of Kenya and Nigeria.
According to Tech Cabal, Paul Russo, the CEO of KCB Group, declared that Access Bank will purchase the entire interest in a transaction that he believed would be advantageous for NBK’s future.
“Access Holdings Plc (“Access Holdings”) today announces,” the announcement declares today that it has reached a legally binding agreement with Kenya-based KCB Group Plc (“KCB”) for the purchase of all of the outstanding share capital of National Bank of Kenya Limited (“NBK” or “the Target”) from KCB, through its flagship subsidiary, Access Bank Plc (“Access Bank” or “the Bank”). (also known as “the Transaction”) The biggest commercial bank in Kenya, KCB Bank Ltd., is likewise held by KCB.
The transaction will strengthen the Bank’s position as a major participant in the Kenyan market and position it as a regional hub for our East African bloc, which is anchored by a robust balance sheet. It also advances the Bank’s African expansion plan.
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“In the upcoming months, the parties will collaborate to fulfill the precedent-setting requirements for the Transaction, including the Central Banks of Kenya and Nigeria’s regulatory approvals.
“The Target would merge with Access Bank Kenya Plc to form an expanded franchise in the pursuit of our strategic objective for the Kenyan and East African markets after the Transaction is completed.”
“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,” stated Ms. Bolaji Agbede, Acting Group Chief Executive Officer of Access Holdings Plc, in response to the transaction.
The agreement with Kenya’s NBK, a reputable and historically robust bank with a balance sheet that exceeds US$1.1 billion, presents the Transaction’s antecedent conditions, which include Central B’s regulatory clearances, present a strong chance for us to accelerate our expansion into the East African market.
“We continue to have faith that the investments we are making to broaden and improve the Bank’s long-term earnings profile will yield substantial benefits for our customers, shareholders, and other interested parties.”
