Nigerian lender, Access Bank Plc, has announced receiving approvals from regulatory authorities in Kenya for the acquisition of Transnational Bank (TNB) Plc.
TNB is a medium-sized commercial bank based in Kenya with great focus on the agricultural sector and significant retail footprints.
In October 2019, the board of Access Bank, via a notice to the Nigerian Stock Exchange (NSE), had said it has obtained a ‘no objection’ of the Central Bank of Nigeria (CBN) to a majority equity stake in TNB.
On Friday, January 17, 2020, the tier-one financial institution, in a disclosure, said it has “now secured the final approvals of all relevant regulatory authorities in Kenya in respect of the acquisition.”
According to the lender, the deal will help in providing cutting edge financial solutions to its clients by leveraging its presence in key payment corridors, strong partnerships in non-presence countries, robust technology platform as well as world-class risk management.
Access Bank said the acquisition of TNB was in line with its strategic objective of becoming Africa’s gateway to the world and ties into its strategy to establish footprints in key African markets, noting that the new development will further complement the bank’s franchise in Rwanda, Congo DRC and Zambia.
“This acquisition aligns with our strategy to become Africa’s gateway to the world and we are excited about the potentials that reside in the East African market,” Group Managing Director of Access Bank, Mr Herbert Wigwe, commented.
“We will leverage our presence in key payment corridors, strong partnerships in non-presence countries, robust technology platform as well as world-class risk management to provide cutting edge financial solutions to our clients,” he said further.
He also said, “We will build on TNB’s existing expertise in agricultural financing and deploy our resources to optimise other business segments. We are committed to supporting the growth and development of our host community in line with our sustainability ethos and are certain that this acquisition will deliver great value to our shareholders.”
Concluding, he expressed optimism that, “Following the receipt of regulatory approvals, we are very confident that the transaction will be completed shortly.”