- The deal with Access Bank is on course and has already received regulatory approval
- “Access Bank Mozambique will become the 7th largest bank in the country from 20th”
- Equity Bank was the first to attempt acquisition of BancABC operations
Atlas Mara – listed on the London Stock Exchange has entered into negotiations with Access Bank which is headquartered in Nigeria, involving the acquisition of the BancABC Mozambique, one of Atlas Mara’s operations in the Southern Africa region.
Atlas Mara acquired the Botswana-based BancABC in 2014 for an estimated $265 million. In addition to Mozambique, the Bank has subsidiaries in countries such as Tanzania, Zambia and Zimbabwe.
Atlas Mara has been on a mission to sell off its BancABC operations in four (4) African countries with initial talks towards that attempt conducted with another regional lender, Equity Group Holdings (EGH).
Equity Group proposed to acquire Atlas Mara banking assets in Tanzania, Zambia, and Mozambique. In exchange, Atlas Mara was to get shares in Equity Group. BancABC Zimbabwe was part of the Atlas Mara acquisition plan but was excluded pending improvement in the macroeconomic environment.
However, the discussions which were first announced in April 2019 hit a snag after the two parties failed to agree on terms.
Atlas Mara said the halt in negotiations “was largely motivated by a change in EGH’s strategy in view of the effects of the Covid-19 pandemic worldwide and on the economies in which Equity Group entities operate.
The deal with Access Bank is on course and has already received regulatory approval over which Access Bank will commence operations in Mozambique under the name “Access Bank Mozambique”.
According to the Bank, the deal will “result in the Access Bank Mozambique becoming the 7th largest bank in the country from 20th.”
Meanwhile, the Kenyan Wall Street reports that Access Bank also entered into a definitive agreement to acquire Grobank Limited in two tranches under which the bank will first buy 49% stake in cash consideration, later boosting its shareholding to a majority position in the second tranche.
As quoted by the publication, Access Bank MD and CEO Herbert Wigwe say the two transactions will boost the bank’s presence in the SADC region.
These transactions will significantly strengthen our presence in Southern Africa, and further our footprint for growth in the SADC region. With a broader presence across the continent, Access bank will be better placed to support our customers who are increasingly looking towards intra Africa growth,’ Wigwe says.
Access Bank Plc is a leading financial institution offering banking products and services for the retail, private, corporate and institutional and non-institutional sectors in Africa and Europe.
The company was established in 1989 and has grown its national and international footprint to approximately 300 branches.
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