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Access Bank is Set to Acquire the National Bank of Kenya
Access Bank, one of the top bank groups in Nigeria, is set to acquire the National Bank of Kenya from the KCB Group.
Access bank To Acquire National Bank of Kenya
The partnership will be finalized after the Central Bank of Kenya (CBK) and the Competitions Authority of Kenya (CAK) approval.
The financial value of the partnership has not been made public.
Recall that in March, KCB Group confirmed its plan to sell National Bank for 1.25 times the bank’s book value.
With NBK’s book value at $79.77 million in 2023, the deal could be valued at approximately $100 million.
Joseph Kinyua, KCB Group chairman, expressed his opinion during the company’s H1 2024 earnings call on Wednesday.
He said, “I am pleased to inform you that the process is nearing completion and is only awaiting the required regulatory approvals, for which we believe we should be concluding very soon. In the coming months, we shall communicate the next steps.”
Also Read: Access Bank Sells 8% of its Botswana Branch
NBK Acquisition To Expand Access Bank’s Footprint
KCB, Kenya’s second-biggest lender, bought NBK, in a rescue deal engineered by the central bank in 2019. KCB had initially indicated it was invested in NBK for the long haul. However, narrowing capital adequacy ratios in the last two years may have prompted a rethink.
“We are on the tail end of the process. I want to acknowledge and make a special mention of the contribution of the National Bank team, it’s not the easiest of a performance environment as it is in the market and when you have the uncertainty of a transfer and you continue to perform, you truly deserve a special mention,” said Paul Russo, KCB Group chief executive.
The acquisition will expand Access Bank’s footprint in Kenya and could be concluded later this year.
The deal marks the second acquisition in Kenya for the Nigerian lender after it bought Transnational Bank Ltd. in 2019 and the first acquisition since the demise of its former GMD/CEO Herbert Wigwe.
This suggests the bank will continue with its inorganic aggressive growth model.
Additionally, NBK has a nationwide network and will increase the bank’s branches from the current 22.
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