Access Bank has announced a definitive agreement to acquire Atlas Mara’s BancABC, building on its strategic focus to enhance profitability and risk metrics through geographic expansion. The continent’s largest retail bank has already received regulatory approval to commence with operations in Mozambique under the name “Acess Bank Mozambique”.
A press release from the institutions shows that the acquisition will feature a cash transaction, “in a combination of definitive and contingent consideration”.
Access bank will fund the transaction from capital invested by the institution in its Mozambique subsidiary. Company secretary Sunday Ekwochi says the transaction will “result in the Access Bank Mozambique becoming the 7th largest bank in the country from 20th.”
In June, Equity Group Holdings discontinued the proposed transaction to acquire four subsidiaries of Atlas Mara, including its Mozambique arm, citing the need to refine its strategy in the wake of uncertainties birthed by COVID-19 and mounting risks.
Access Bank also entered into a definitive agreement to acquire Grobank Limited in two tranches. The bank will first buy 49% stake in cash consideration, later boosting its shareholding to a majority position in the second tranche.
MD and CEO Herbert Wigwe say the two transactions will boost the bank’s presence in the SADC region.
These transactions will significantly strengthen our presence in Southern Africa, and further our footprint for growth in the SADC region. With a broader presence across the continent, Access bank will be better placed to support our customers who are increasingly looking towards intra Africa growth,’ Wigwe says.