Access Bank is set to purchase the National Bank of Kenya from the KCB Group, marking its second acquisition of a Kenyan bank in less than five years.
Following its acquisition of Transnational Bank Limited in 2019, this marks the second purchase for the Nigerian lender in Kenya.
According to a statement filed on the Nigerian Exchange Limited on Wednesday by the Secretary of Access Holdings, Sunday Ekwochi, the conclusion of the deal depends on securing regulatory approvals from the central banks of Kenya and Nigeria.
The statement read, “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.”
The Acting Group CEO of Access Holdings Plc, Bolaji Agbede described the acquisition as a pivotal move in realizing their five-year strategic plan to establish the bank as Africa’s Gateway to the World.
She highlighted NBK’s strong presence in Kenya with a substantial balance sheet exceeding US$1.1 billion, emphasizing the opportunity it presents to expand their presence in the East African market.
