'Deal Almost Done': Access Bank Set to Buy Another Bank, Finance Director Confirms Date

• Access Bank is expected to complete the acquisition of National Bank of Kenya by the end of September 2024
• The acquisition will strengthen Access Bank's presence in East Africa, aligning with its strategy to pursue growth opportunities across the continent
• The Central Bank of Kenya and other regulatory bodies have already approved the transaction, allowing for a smooth transition

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Access Bank is expected to finalise its acquisition of the National Bank of Kenya (NBK) by September 30, 2024.

The deal has been under negotiation for several months and marks a significant milestone in Access Bank's strategic expansion across Africa.

The acquisition will see Access Bank, Nigeria's largest lender by assets, solidify its footprint in Kenya, a key market in the East African region.

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With this move, Access Bank aims to leverage NBK's established local presence and customer base.

Access Bank to buy National Bank of Kenya (NBK)

BusinessdailyAfrica reports that the deal will also help Access Bank revitalize NBK, which has faced financial challenges in recent years.

The Central Bank of Kenya and other relevant regulatory bodies have already given the necessary approvals for the transaction.

The deal delay till September is now due to efforts by Access Bank to meet the minimum capital requirements set by the CBN.

KCB group's finance director Lawrence Kimathi was quoted as saying:

"The regulator (CBN) is looking at both a recapitalisation plan and the acquisition. It is public knowledge that Access Bank is doing a rights issue and so they are in the market to raise some capital to meet the regulatory requirements.

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“So, the regulator is probably going to focus a bit more on that and once they finish the capital raising, then look at the application for acquisition.

"We are at the tail end of doing the Completion Audit so everything held constant, we should be closing the deal before the end of the third quarter.”

Fidelity targets five banks across Africa

In another report, Fidelity Bank was considering the acquisition of five commercial banks across the continent.

The move came on the heels of the bank's recent acquisition in the United Kingdom.

Fidelity is currently the sixth-largest lender in Nigeria, with assets worth almost N4 trillion.

Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng