- Access Bank plans to takeover African Banking Corporation in Botswana after agreeing to about 78% ownership
- African Banking Corporation is owned by Atlas Mara, but ownership is expected to change in the first half of 2021
- The acquisition by Access Bank is part of the lender's Southern African takeover in Mozambique, Zambia and South Africa
Access Bank has announced a plan to acquire another financial institution outside Nigeria as it holds a negotiation with Atlas Mara, the owner of the African Banking Corporation in Botswana.
The Nigerian bank will take over 78% ownership in the fifth-largest lender in the landlocked country in Southern Africa. The acquisition is part of Access Bank's expansion strategy for the region.
It has been acquiring banks in Southern Africa from Zambia to South Africa, Mozambique and now Botswana. African Banking Corporation has agreed to the terms offered by Access Bank, and the deal will be concluded in the second quarter of 2021.
According to the Managing Director of the Nigerian lender, Herbert Wigwe, the Botswana bank has a quality retail book:
“We remain committed to a disciplined and thoughtful expansion strategy in Africa, which we believe will create strong and sustainable returns.
“BancABC is Botswana’s fifth-largest bank and has a quality retail book with the scope for expansion into corporate and small to medium-sized enterprise lending,” Wigwe said in a statement confirming the deal."
Other banks Access has acquired in the Southern African region includes Zambia-based Cavmont Bank Limited, South Africa's Grobank Limited, and Transnational Bank in Kenya.
Meanwhile, Legit.ng had earlier reported that the Nigerian National Petroleum Corporation (NNPC) has denied reports that the government is trying to increase full-price next month.
There had been speculation of a possible hike in pump price due to the agreement the Nigerian government had with International Monetary Fund and the World Bank last year.
The government had promised to reflect market realities in its fuel price according to the international oil price, but that hasn't been done for more than two months.