Key Highlights
- Access Holdings has received final regulatory approval from the Central Bank Zambia for the acquisition and merger of African Banking Corporation Zambia limited into its existing operations
- The Central Bank of Nigeria and Common Market for East and Southern Africa competition Commission had earlier granted their ‘no objection’ to the transaction in 2022.
- The combination of the two banks will create significant synergies between the banks
Access Holdings Plc said one of its subsidiaries, Access Bank Zambia Limited, has received final regulatory approval from the Bank of Zambia tp acquire and merge African Banking Corporation Zambia Limited into its existing operations.
The company disclosed this in a notice to the Nigerian Exchange Group, a copy of which was obtained by Nairametrics.
CBN’s earlier endorsement
The statement signed by Company Secretary Sunday Ekwochi noted that the Central Bank of Nigeria and Common Market for East and Southern Africa competition Commission had earlier granted their approvals to the transaction in 2022.
Integrating African Banking Corporation Zambia Limited into Access Bank
Access Bank said it will now move towards integrating and merging Atlas Mara Zambia into its operations, which is expected to create one of the top five banks in Zambia. Commenting on the transaction, Access Holdings’ Group CEO Dr, Herbert Wigwe, said:
- “The transaction builds on our earlier acquisition and merger of Cvmont Bank Plc into Access Bank Zambia and underscore our resolve to strengthen our presence in Zambia, a key African market that fits into our strategic focus on geographic earnings growth and diversification.”
Significant synergies
He noted that the combination of the two banks will create significant synergies between Access Zambia’s world class wholesale and transaction banking capabilities and Atlas Mara Zambia’s market leading retail and public sector capabilities to form a market leading Universal platform that will greatly impact the Zambian market.
What you should know
Access Bank Plc had said it has signed an agreement with Atlas Mara Limited on a proposed merger between African Banking Corporation Zambia Limited (Atlas Mara Zambia) and Access Bank Zambia Limited.
This development comes shortly after the bank acquired a majority stake in BancABC Botswana — its fourth acquisition in 2021.
Upon completion of the transaction, Ekwochi said the bank is expected to retain or increase its current shareholding in Access Bank Zambia.
With the arrangement, the bank said it would have more than 70 branches and agencies with an approximate $1 billion total assets and over 300,000 customers in the country.
- “The transaction will not require significant additional capital investment requirements from the bank given the capital and other synergies created from the merger between Access Bank Zambia with Cavmont Bank in 2020,” the statement said.
- “The proposed transaction is expected to be concluded in 2022, subject to the fulfilment of conditions including regulatory approvals in Nigeria and Zambia.”
- Commenting on the proposed merger, Herbert Wigwe, group managing director/chief executive officer, Access Bank, said: “This transaction represents another milestone that brings us closer to the achievement of our broader strategic objectives.
- “The merger of Atlas Mara Zambia with Access Bank Zambia is expected to augment our presence in Zambia and the broader COMESA region, Africa’s largest free trade area.
- “We are particularly excited by the prospects of increased earnings contribution to the bank from the enlarged Access Bank Zambia, which has also announced the appointment of a new Managing Director, Mr. Lishala Situmbeko, who brings over 25 years of cognate experience and deep local relationships into our Zambian operation.
- “Today’s announcement is a testament to the strong confidence of the Zambian market in the Bank’s country and regional strategy as well as our strong confidence in the long-term prospects for the Zambian economy.”
Impressive, o it r economy needs such.