Access Bank finalises acquisition of Transnational Bank of Kenya
Nigeria’s top lender, Access Bank on Monday said it has finalised the acquisition of Transnational Bank of Kenya after it obtained regulatory approvals and fulfilled “all conditions precedent to the completion.”
The bank in a regulatory filing with the Nigerian Stock Exchange (NSE) said the completion of the acquisition of the East African lender has brought it closer to the vision of becoming the world’s most respected African bank.
It said the entry into the Kenyan market would enable its customers to tap into ‘Our extensive global network that translates into immense business opportunities.”
The Nigerian bank had last October announced its investment in the East African banking group in its bid to expand its operations across the continent.
Chief executive of the bank, Herbert Wigwe said; “We are excited to make an entry into the vibrant Kenyan market. We pledge to put our customers at the forefront of everything we do.
“Throughout creation of a world class payment system, we will build and support our wholesale and retail customers using our strong customer insights to deliver beyond their expectations.”
Wigwe said the bank was grateful to the regulators for the confidence reposed in it throughout the transaction and commended the efforts and support of its team of advisors who made the deal possible.
Access Bank Plans To Open Operations In 4 More African Countries In 2020
Access Bank had last year said it plans to open operations in four additional African countries in the next year, following its takeover of Transnational Bank.
“By this time next year we would probably have added about four more subsidiaries, most of them greenfield,” Chief Executive Officer Herbert Wigwe has said.
South Africa, Angola, Mozambique, Senegal, Liberia and Ivory Coast are among countries being considered for the setting up of subsidiaries, representative offices or partnerships, he said.
The institution plans to be present in 22 African countries, according to a presentation on its website. It currently operates in Sierra Leone, Gambia, Congo, Ghana, Nigeria, Rwanda and Congo.
Access Bank acquired rival Diamond Bank early this year as it sought to expand retail penetration in its home market.
However, analysts said the outbreak of the coronavirus pandemic may slow down the lender’s proposal to expand to more African countries this year.
Many Nigerian banks are currently struggling to adjust to currency risk in the wake of covid-19 outbreak which has impacted the country’s foreign exchange earnings from crude oil exports. Nigeria is facing dollar shortage following the sharp drop in global oil prices and cut in production output due to agreement by the OPEC+ to reduce output in order to stabilise the market.