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.
The statement said as follows: "Access Holdings Plc (“Access Holdings”) today announces that KCB Group Plc (“KCB”), based in Kenya, and its flagship subsidiary, Access Bank Plc (“Access Bank” or “the Bank”), have entered into a legally binding agreement for the acquisition of KCB’s entire issued share capital in National Bank of Kenya Limited (“NBK” or “the Target”). The largest commercial bank in Kenya, KCB Bank Ltd., is held by KCB (the “Transaction”).
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.
The parties will collaborate in the upcoming months to fulfill the precedent-setting requirements for the Transaction, which include obtaining regulatory approvals from the Central Banks of Kenya and Nigeria.
“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 NBK, a reputable bank with over US$1.1 billion in assets and a solid track record in Kenya, offers a significant chance to accelerate our expansion in 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.”