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  • Business - Banking & Finance
  • Updated: July 21, 2020

Herbert Wigwe Addresses Access Bank's New Inorganic Growth Move In Kenya

The Group Managing Director and Chief Executive Officer of Access Bank, Herbert Wigwe, has reacted to the acquisition of Transnational Bank - a lender in Kenya - by Access Bank. There had been talks about a possible acquisition since October last year, but the Nigerian bank has now finalised the takeover of the Kenyan bank.

In a statement obtained by AllNews, Wigwe spoke of the regulators - Central Bank of Nigeria and that of Kenya - trust in the acquisition process, which could have collapsed if the regulators had moved against the deal, "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.

"Through the 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. We are indeed grateful to the regulators for the confidence reposed in us throughout this transaction and we acknowledge the support of our team of world class advisors whose hard work made this deal possible." Wigwe said in the statement.

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Details Of The Access Bank/Transnational Deal

With the final acquisition and approval from the regulators, Access Bank will takeover 100% of Transnational Bank Plc and its 28 branches for an undisclosed amount. This put Access Bank in direct competition with other banks operating in Kenya - where the country has been encouraging merger between banks.

The country has more banks per person than South Africa and Nigeria. So it has been encouraging merger to reduce the number of banks which is about 40 banks to 50 million population.

Meanwhile, Access Bank's acquisition of Transnational Bank will also place it in direct competition with its Nigerian counterparts, Guaranty Trust Bank (GTBank) and United Bank of Africa (UBA) - both of which also have subsidiary in the East Africa country.

Access Bank Plans To Buy Zambian Bank After Acquiring Kenyan Bank

AllNews had reported that Access Bank 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.

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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.

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Olalekan Fakoyejo
Olalekan Fakoyejo

Fakoyejo Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ)....

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