Nigeria’s biggest lender Access Bank Plc has completed the 100 percent acquisition of Transnational Bank Ltd.
This follows the fulfillment of all regulatory approvals and conditions precedent to completion. The Nigerian lender announced its intention on October 28th, 2019.
Through a corporate disclosure on the Nigerian Stock Exchange Access bank said, “The Bank’s vision is to be the World’s Most Respected African Bank and our entry into the Kenyan market, a gateway in East Africa, not only brings us closer to that vision but enables our customers to tap into our extensive global network that translates into immense business opportunities, robust and efficient digital solutions, competitive products and unrivaled customer experience.”
Mr. Herbert Wigwe, Chief Executive Officer, commenting on the acquisition said, “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.”
Access Bank Nigeria will be among other Nigerian Banks such as Guaranty Trust Bank and the United Bank of Africa already in the Kenyan market.
In Q1’2020, Transnational bank recorded losses of Kshs 2.5 million, from Kshs 17.1 million losses recorded in Q1’2019 and has assets worth Kshs 9.7 billion as at Q1’2020.
“In our view, the transaction will strengthen Kenya’s banking sector given that Access Bank is the largest lender in Nigeria with an asset base of USD 18.7 billion. We believe that continued bank consolidation efforts in Kenya, as highlighted in our Q1’2020 Banking Report, will lead to a stable banking sector, as consolidation continues to eliminate weaker banks,” comments analysts from Cytonn Investments.
“In our view, banks will continue to consolidate to form strategic partnerships and well-capitalized entities capable of navigating the relatively tough operating environment induced by stiff competition.”