- The Nigerian lender acquired African Banking Corporation from Atlas Mara, an investment company
- Access Bank will merge the Mozambique lender to its subsidiary in the Southern African country
- The acquisition will make the company the seventh largest bank in Mozambique and strengthen Access Bank's presence
Atlas Mara, the parent company of Union Bank of Nigeria, has sold one of its banks, African Banking Corporation, to Access Bank, after completing negotiations that had began last year.
This was made known in a statement released by Access Bank. The Nigerian lender the bank which is based in Mozambique. The acquisition will make African Banking Corporation the seventh largest creditor in the Southern African country.
According to the statement, African Banking Corporation will be merged into Access Bank Mozambique to form a larger bank. This means the Atlas Mara lender will start bearing the name of Access between the second and third quarter of this year.
The Herbert Wigwe-led bank has been making series of acquisitions of late since it began negotiations with lenders in Southern Africa region, acquiring Cavmont Bank Limited in Zambia and Grobank Limited in South Africa.
In his reaction to the acquisition, Wigwe said the deal further broadens Access Bank's footprint in the African region and helps with the company's growth plans in Mozambique, as well as its competitiveness in the African markets.
In Wigwe's words, he stated that:
"Scale is an important contributor to returns and this transaction is consistent with our rigorous efforts to create a strong presence with scale across Africa, and in line with our vision to be the World's Most Respected African Bank."
Meanwhile, Legit.ng had earlier reported that residents in Kaduna State were not allowed to use commercial banks' services due to the ongoing protest against the state government.
The protest resulted from the faceoff between Governor Nasir El-Rufai and the Nigerian Labour Congress, which took to the street over sack of workers in Kaduna State.
The Labour group said the governor had been sacking state workers for the past four years arbitrarily without paying them their entitlement.