Nigerian lender, Access Bank, has acquired another bank to expanded its operation in Africa. Access Bank has been conducting series of acquisition across Africa, from Zambia, to Kenya, now it is set to make another acquisition in Mozambique. The acquisition is meant to aid its entry into South African market.
In a statement obtained by AllNews, it was gathered that Access Bank applied and received approval to operate in the financial sector of Mozambique. After regulatory approval, Access Bank said it will operate as Access Bank Mozambique S.A in the country.
Access Bank To Acquire Atlas Mara's Bank Operation
AllNews gathered that African Banking Corporation, which is owned by ABC Holdings, will be acquired by Access Bank Mozambique. The subsidiary of the Nigerian bank has entered into definitive agreement with ABC Holdings - owned by Atlas Mara - to acquire the Corporation with cash "in a combination of definitive and contigent consideration."
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The acquisition comes at a period Access Bank is planning to restructure into a Holding Company in order to diversify and branch into non-core banking businesses just like Sterling Bank and Guaranty Trust Bank (GTBank) are envisaging - already, Access Bank has received approval-in-principle from the Central Bank of Nigeria (CBN).
How Access Bank Will Purchase Atlas Mara's Bank Operation
Access Bank will not acquire African Banking Corporation with shares, but in cash according to the statement seen by AllNews. Access Bank said, "The transaction will be funded from the capital invested by the Bank in Access Bank Mozambique."
Note that the acquire of African Banking Corporation and conversion into Access Bank Mozambique will turn the bank into the seventh largest bank in Mozambique from the twenteeth position. Access Bank's acquisition of Cavmont Bank Limited in Zambia and Transnational Bank in Kenya also led to an hike in these banks valuation.
While speaking on the impact of the acquisition, it was stated that, "As an enlarge business, Access Bank Mozambique will have an enhanced capacity to play a more impactful role in the growth of the Mozambique economy, particularly in the emerging oil and gas sector."
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How Series Of Acquisition Will Affect Access Bank
The series of acquisition by Access Bank is part of the Nigerian lender's strategy to cover relevant African markets that will expose Access Bank to a global market, "These transactions will result in a more connected African banking network that builds on Access Bank's existing foundation and enhances its value proposition to stakeholders, including customers and employees.
"Shareholders will benefit from the economies of scale of a larger banking network, including the associated cost efficiencies arising from the Bank's federated IT system and replication of investments in innovative products across a wider range of markets."
Note that aside from the African region, Access Bank already has operations in UAE, UK, China, Lebanon and India.