Access Bank Plans To Buy Zambian Bank After Acquiring Kenyan Bank

Access Bank has announced that it is in talks to acquire another bank, this time, in Zambia. The lender said it is planning to acquire Cavmont Bank Limited, but the acquisition will be carried out by Access Bank Zambia Limited. This comes seven months after Access Bank acquired a Kenyan bank.

In a statement obtained by AllNews, Access Bank said its wholly owned subsidiary in Zambia has entered into discussion with Cavmont Capital Holdings Zambia Plc to acquire Cavmont Bank Limited. The Nigerian lender said if a deal is reached, Cavmont Capital Holdings will transfer its 100% interest in Cavmont Bank Limited to Access Bank Zambia.

But regardless the agreement reached by Cavmont Capital Holdings and Access Bank after the negotiation, both companies will have to get approval from industry regulators in Nigeria and Zambia before the deal can be finalised, "The completion of a transaction would be subject to formal regulatory approvals." The statement seen by AllNews disclosed.

Access Bank And Its Cravings For Inorganic Growth

Banks are known to grow their revenue and customer base through organic or inorganic growth. Some banks choose organic growth, which means not making any acquisition, choosing to grow with acquiring any Bank to boost their revenue and customer figures. But some banks choose the opposite (inorganic), as they favour acquisition to grow their revenue and customer base.

Access Bank specialises in inorganic growth as it has been involved in several acquisitions, the latest being the acquisition of Diamond Bank last year and that of Transnational Bank Plc and its 28 branches in Kenya  in January 2020. Access Bank took over 100% of Transnational Bank Plc on February 1, 2020.