Exim Bank Tanzania Group has made an offer to buy the entire assets and liabilities of UBL Bank Tanzania (UBLT).
Financial terms of the transaction were not revealed.
Set up in 2013, UBLT is part of Pakistani lender United Bank.
The deal is expected to be wrapped up in the middle of this year. Currently, it is pending regulatory nod.
Exim Bank deputy CEO Jaffari Matundu said: “We believe that UBTL’s highly seasoned branch staff combined with our innovative banking style will enable us to offer market leading banking products to UBTL’s customers.
“We look forward to welcoming UBTL customers to our Bank and extensive branch network.
“This acquisition will be a natural expansion and strengthening of our existing presence and market share in the country.”
Exim Bank Tanzania is ranked as the fifth largest bank in the country. It also operates in Comoros, Djibouti and Uganda.
The bank, along with UBTL, is now working alongside Tanzania’s central bank to facilitate a smoot transaction.
UBTL CEO Gasper Njuu said: “After significant consideration, both UBTL and its shareholders concluded that a sale to Exim Bank, as one of the leading banks in Tanzania with a wide product and services suite, would result in a positive outcome for all stakeholders, including, and most of all, our customers.”