- The name of South African bank, Grobank Limited, has been changed by Access Bank after acquisition
- The Nigerian lender changed the name to Access Bank South Africa after taking up majority stake
- The Herbert Wigwe-led company is planning to takeover Grobank Limited by second quarter of this year
Access Bank has taken its first move as owner of Grobank Limited by changing the South African company's name. The Nigerian bank is preparing to complete its takeover by the second quarter of 2021.
The change was made in line with the company's strategy of selling its services across Africa with the Access brand name. According to a statement, Grobank Limites now bears Access Bank South Africa.
The acquisition of Grobank Limited reportedly cost Access Bank $26.72 million to get the 49% majority stake in the company. With the acquisition approved by regulators of both countries, the Nigerian lender has been making changes.
In a statement from commercial bank, it was stated that:
"With this new development, Access Bank South Africa Limited is positioned to deliver a robust banking operation that connects key African markets.”
The deal will further expand Access Bank's customer base which has been put as the largest since it acquired Diamond Bank and other African banks on the continent in an inorganic growth strategy.
Aside from Grobank Limited, Access Bank had also made other acquisitions in Southern and Eastern African as it seeks to reduce its expose in Nigeria and increase shareholders' earnings.
Access Bank had acquired African Banking Corporation, Transnational Bank and Cavmont Bank Limited in Mozambique, Kenya and Zambia respectively. It secured the deal through its local subsidiary in the mentioned countries.
Meanwhile, Legit.ng had previously reported that Zenith Bank and Access Bank are planning to acquire Union Bank of Nigeria after the company's majority shareholder decided to sell.
The Nigerian lenders want to acquire Atlas Mara stake in Union Bank. The London-quoted company is trying to sell its investment in Africa, and it is getting many interested buyers.
Union Bank is its largest investment in Africa which has attracted buyers like private equity firm and Moroccan financial institution.