Access Bank Set To Complete Take Over of Another Commercial Bank

• Access Bank has taken another step closer to the completion of the deal to acquire the National Bank of Kenya
• The bank deal with KCB Group Plc which was first announced in March 2024, is now set to be completed
• Access Bank will now take over the branches of the Kenya Bank, further strengthing its presence in the East African region

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 Kenya, a subsidiary of Access Holdings Plc, is set to complete the takeover of the National Bank of Kenya (NBK) five months after the deal was expected to close.

A new report indicates that the deal is now very close, thereby actualising Access Bank's bid to expand its footprints in the East African region.

Access Bank and KCB Group, the owner of NBK, signed a binding agreement in March 2024 for the acquisition, valued at 1.25 times the National Bank of Kenya’s book value.

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TechCabal reports that the deal is worth approximately $100 million.

The transaction was expected to close by the end of 2024, pending regulatory approval from the Competition Authority of Kenya (CAK).

CAK directed Access Bank to retain at least 80% of NBK’s 1,384 employees for one year after the acquisition.

Additionally, Access Bank was required to retain all 316 employees of Access Bank Kenya, its local subsidiary.

However, the takeover stalled as the bank awaits final approval from the Central Bank of Kenya to complete the deal.

Update on Access Bank's take over of Kenya's bank

Speaking on the latest development, KCB Group’s CFO Lawrence Kimathi said:

“We extended the long stop date to February of this year because we hadn’t gotten all the regulatory approvals.

“Within that period, we got approval from the CBN, so the only approval that’s remaining is from the Central Bank of Kenya.

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"Access themselves have written to our regulator to say that they are keen to close this transaction.”

Access Bank, which operates 23 branches in 12 counties, has significantly expanded its reach by acquiring NBK’s 77 branches in 28 counties.

Currently ranked 37th out of 39 licensed banks in Kenya, Access Bank is a tier 3 lender. Acquiring NBK, a tier 2 bank, will strengthen its position and growth prospects in the market.

Access Bank moves to acquire South African Bank

Earlier, Legit.ng reported that Access Holdings Plc announced that it had entered a binding agreement to acquire South Africa’s Bidvest Bank.

The deal was disclosed in a statement on the Nigerian Exchange (NGX) signed by Sunday Ekwochi, Access Holdings’ secretary.

Access Bank is expected to complete the acquisition in the second half of 2025, pending approval from regulators. Once the deal is finalised, Bidvest Bank will merge with Access Bank's current South African subsidiary. This merger aims to create a larger platform to support the bank's growth plans in the Southern African Development Community (SADC) region.

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Proofreading by James Ojo, copy editor at Legit.ng.

Source: Legit.ng