Nigeria’s Access Bank is set to acquire up to 100% shareholding in Kenyan lender Transnational Bank.
The deal, set to become effective on 1 February 2020, was announced by the Central Bank of Kenya (CBK). However, the terms of the acquisition were not disclosed.
In December 2019, the central bank approved the transaction under Section 13 (4) of the Banking Act. The deal also received green light from the Cabinet Secretary, National Treasury, last week.
In the statement, the central bank noted: “The acquisition is expected to strengthen the resilience of Kenya’s banking sector.”
Transnational Bank started its operations in December 1985 and offers personal and business banking services in Kenya. Currently, the lender has 28 branches in the country.
On the other hand, Access Bank was incorporated in 1989 in Nigeria. Currently, it is the largest lender in its home country with a total asset base of around $16.1bn.
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It also has operating subsidiaries in Democratic Republic of Congo (DRC), Gambia, Ghana, Nigeria, Rwanda, Sierra Leone and Zambia.
The acquisition of Transnational Bank will further bolster its presence in the African continent.
Access Bank also has a subsidiary in the UK and representative offices in China, the United Arab Emirates, Lebanon and India.
Notably, Access Bank merged its operations with another local lender Diamond Bank last year.