- Deal makes it one of Africa’s largest retail banks with over 800,000 shareholders
- Third Nigerian bank with presence in Kenya.
- This is Access Bank’s acquisition sequel to the full acquisition of Diamond Bank
Access Bank plc has announced its successful acquisition of the Transnational Bank (Kenya) plc barely nine months after its board approved the plans to acquire a Kenya-based financial institution.
The acquisition followed after full regulatory approvals and fulfilment of all conditions precedent to the completion.
Access Bank, in a statement signed by the company’s secretary, Sunday Ekwochi, and issued to the investing public and made available on the Nigerian Stock Exchange (NSE) website on Monday, revealed the full completion of the takeover deal by the Nigerian leading financial institution.
Herbert Wigwe, group managing director and chief executive officer of the bank, commenting on the acquisition, said: “We are excited to make an entry into the vibrant Kenyan market. We pledge to put our customers at the forefront of everything we do. Through the creation of a world-class payment system, we will build and support our wholesale and retail customers using our strong customer insights to deliver beyond expectations.
“We are indeed grateful to the regulators for the confidence reposed in us throughout this transaction and we acknowledge the support of our team of world-class advisors whose hard work made this deal possible,” Wigwe added.
The bank chief further reiterated the its vision to be the world’s most respected African bank, while stressing that the bank’s entry into the Kenyan market is a key gateway into East Africa.
Wigwe further revealed that the transaction did not only bring the banking group closer to that vision, but enables the customers to tap into the extensive global network that translates into immense business opportunities, robust and efficient digital solutions, competitive products and unrivalled customer experience.
It is widely understood that Kenya’s central bank has been pushing for a merger between the nation’s banks in a bid to reduce the bank to person ratio in Kenya, which is largely higher than the ratio obtainable in Nigeria and South Africa.
“This is largely due to the country’s 50 million population and a total of 40 banks. The Kenyan banking system is on the quest for consolidation and resilience in the sector. Thus, the sector is opened to merger and acquisitions of various banks,” Central Bank of Kenya commented.
Sequel to this transaction, Kenya’s Central Bank in its drive for consolidation has pushed for successful merger and acquisition of some top financial institutions in the country, some of which include the full acquisition of Chase Bank Kenya Limited’s assets and the entire capital of Fidelity Commercial Bank Limited by Mauritius based SBM Holdings Limited. Also, there was a merger recorded between Commercial Bank of Africa Limited and NIC Group Plc. and consequently the acquisition of National Bank of Kenya Limited by KCB Group Limited.
This move by Access Bank, according to Business A.M.’s financial analyst sources, is a drive towards solidifying the bank’s presence in Africa as one of the leading financial institutions with operation in the Kenyan market just like its counterparts, the United Bank of Africa (UBA) and Guaranty Trust Bank (GTB).
Furthermore, the commercial bank, with a wide network of more than 600 branches and sales outlets which span across three continents, 12 countries plus Kenya, making 13 countries and over 36 million customers have stamped its name in the sand of time to become one of Africa’s largest retail banks following its March 2019 acquisition of Diamond Bank.