Access Bank Plc Announces Proposed Merger With Zambian African Banking Corporation

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Access Bank Plc Announces Proposed Merger With Zambian African Banking Corporation
Access Bank Plc Announces Proposed Merger With Zambian African Banking Corporation

Access Bank Plc has disclosed that a binding agreement with Atlas Mara Limited has been executed on the proposed merger between African Banking Corporation Zambia Limited and Access Bank Zambia Limited.

This was contained in a notice filed with the Nigerian Exchange and signed by the company secretary, Sunday Ekwochi, stating that the proposed transaction is expected to be concluded in 2022, subject to the fulfilment of conditions including regulatory approvals in Nigeria and Zambia.

The announcement comes just a few weeks after the bank acquired a controlling stake in Botswana’s African Banking Corporation.

What this means

According to the disclosure, following the completion of the transaction, Access Bank will retain or increase its current shareholding in Access Bank Zambia which will have approximately $1 billion in total assets, over 300,000 customers in Zambia and over 70 branches and agencies.

In addition, there will be no additional capital investment requirements from the bank as a result of the transaction due to the capital and other synergies created from the merger between Access Bank Zambia with Cavmont Bank in 2020.

Commenting on the proposed merger transaction, CEO/GMD of Access Bank Plc, Dr Herbert Wigwe 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.

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,” he added.

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Backstory

So far this year, Access Bank Plc has successfully completed and announced different acquisitions and mergers involving the bank’s subsidiaries in different countries which include Zambia, Botswana and Mozambique.

Recall that, in January 2021, Access bank completed the acquisition of Cavmont Bank Limited following fulfilment of “key conditions precedent including regulatory approvals.”

In May 2021, the bank announced that its subsidiary in Mozambique concluded a deal for the acquisition of African Banking Corporation, which was backed by London-listed financial services group Atlas Mara Limited.

Earlier this month, Access Bank Plc announced that it has completed the acquisition of a majority stake of 78.15% in African Banking Corporation of Botswana Limited, Botswana.