Nigerian multinational lender Access Bank has secured key regulatory approvals for the proposed acquisition of South Africa-based Grobank.
The bank received green light from the South African and Nigerian regulatory authorities to proceed with the transaction.
The approvals serve as important milestones for the deal, slated to complete in the second quarter of this year.
However, the closure is conditional upon other conditions.
Access Bank GMD/CEO Herbert Wigwe said: “Today’s announcement represents significant progress in delivering on our strategic intent of becoming Africa’s Gateway to the World in pursuit of our vision to be the World’s Most Respected African Bank.”
Grobank provides business banking, agribusiness and forex services among others.
In September last year, Access Bank signed a definitive agreement with GroCapital Holdings, the bank holding company, to acquire majority stake in Grobank.
As agreed, Access Bank will make an investment in two tranches to purchase the majority interest in Grobank.
The move was part of Access Bank’s plan to bolster its footprint across Africa and boost revenue channels. The Nigerian lender aims to provide banking services to 100 million unique customers across the continent.
A full-service commercial bank, Access Bank has more than 600 branches and service outlets in 12 countries. The bank employs around 28,000 people and has more than 36 million customers.
Last year, Access Bank acquired Kenyan lender Transnational Bank for an undisclosed sum.