Nigeria’s Access Bank concludes acquisition of Cavmont Bank in Zambia, to streamline operations with local unit
By Samuel Bankole
Nigeria’s Access Bank on Wednesday said its Zambian unit has concluded the acquisition of Cavmont Bank Limited after regulatory approvals in the East African country.
In a regulatory filing, Access Bank said the merger of Cavmont Bank into Access Bank Zambia “is expected to take place before the end of January.”
The lender said the merge of the two institutions will ensure that Access Bank Zambia emerge “stronger and well capitalised banking franchise with improved scale and capacity to deliver sustainable and best-in-class financial services in the Zambian market.”
“Growing our presence in Zambia remains a strategic priority for Access Bank and with the conclusion of the proposed merger with Cavmont, the bank looks forward to realising the synergies from the transaction and achieving further growth on the combined platform to the benefit of all stakeholders.”
The bank had last August announced the acquisition plan while awaiting the Zambian financial regulatory body’s approvals for the transactions.
The lender had said last year that it has entered into a definitive agreement with Cavmont Capital Holdings Zambia (CCHZ) to acquire one of the country’s leading commercial lenders, Cavmont Bank Limited, a subsidiary of CCHZ.
“This is a highly complementary transaction, combining ABZ wholesale and trade finance capabilities with Cavmont Bank’s retail and commercial banking operations,” Access Bank said in the filing.
Access Bank, however, did not disclose how much the transactions cost its shareholders but it noted that the ultimate majority shareholder of CCHZ, will invest at least $16.5 million of preference shares into ABZ.