In a strategic move to bolster its presence in East Africa, Access Bank has announced the acquisition of the National Bank of Kenya (NBK) from the KCB Group. This marks Access Bank’s second acquisition of a Kenyan bank in under five years, following a previous attempt to acquire Sidian Bank in 2023. The deal, expected to be finalized within 6 to 9 months, signifies a significant step towards Access Bank’s regional growth strategy.
Details regarding the total acquisition price were not disclosed, but Russo confirmed during an investor briefing that the agreement values NBK at 1.25 times its book value. Analysts estimate this could translate to several billion Kenyan shillings, potentially marking one of the largest bank acquisitions in the region.
“After careful consideration, we concluded that accepting this binding offer from Access Group was the most strategic decision for KCB Group,” Russo said. The reasoning behind the sale remains undisclosed, but analysts suggest it could be part of KCB Group’s strategy to streamline operations or focus on core markets.
News of the acquisition was met with a positive response from investors. KCB Group shares surged by 9.9% following the announcement, indicating market confidence in the deal.
The acquisition is subject to regulatory approvals in both Kenya and Nigeria. The timeline for completion remains unclear, but both parties are expected to cooperate closely to expedite the process. Industry experts are watching the deal closely, anticipating its potential impact on the competitive landscape of banking in East and West Africa.
While the long-term implications of the acquisition remain to be seen, the sale of NBK to Access Group marks a noteworthy development in the African financial sector. It raises questions about the future of pan-African banking consolidation and the potential for further collaboration between regional financial giants.
Nigeria’s Access Bank acquires National Bank of Kenya in its second Kenyan acquisition : Access Bank will acquire the National Bank of Kenya (NBK) from the KCB Group, its second acquisition of a Kenyan bank in under five years. https://t.co/DT8StII2Qw
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