Access Bank’s Plan to Acquire Bidvest Bank Collapses Amid CBN Recapitalisation
- Access Bank's acquisition of Bidvest Bank has collapsed due to unmet conditions and regulatory hurdles
- Bidvest Group has reopened discussions with other potential buyers while reaffirming its exit from financial services
- The failed deal raises concerns for Access Bank amid leadership changes and Nigeria’s regulatory pressures
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Access Bank’s plan to deepen its footprint in South Africa has suffered a major setback after its proposed acquisition of Bidvest Bank collapsed, following the failure to meet key conditions by the agreed deadline.
Bidvest Group confirmed on Monday that it has formally terminated the transaction and has reopened discussions with other potential buyers for its banking subsidiary.
Source: UGC
The deal, first announced in December 2024, was valued at approximately R2.8 billion and was expected to significantly boost Access Bank’s scale in South Africa.
In a statement, Bidvest said both parties had worked actively to secure the necessary regulatory approvals but were unable to conclude the transaction within the contractually agreed longstop date.
“Unfortunately, certain conditions were not fulfilled by Access Bank by the agreed deadline, resulting in the termination of the transaction,” the group said.
Bidvest reaffirms exit from financial services
Despite the deal’s collapse, Bidvest stressed that Bidvest Bank remains adequately capitalised and operationally stable.
The conglomerate said it would continue to support the lender while a renewed disposal process is underway.
Bidvest also reiterated that its decision to exit financial services remains unchanged, describing the sale of its banking arm as a strategic move to refocus on its core and more profitable businesses.
The group has been gradually unwinding its exposure to financial services as part of a broader portfolio realignment.
In addition to Bidvest Bank, the company disclosed that it is pressing ahead with the planned sale of its life insurance subsidiary, Bidvest Life, to a private equity-led consortium, subject to regulatory approvals and standard closing conditions.
Ratings concerns and market uncertainty
The failed transaction had already attracted scepticism from ratings agencies.
Last month, Moody’s downgraded Bidvest Bank’s credit ratings, citing uncertainty surrounding the proposed sale and concerns over reduced parental support following a change in ownership.
The ratings agency warned that prolonged uncertainty could weigh on the bank’s funding profile and operating outlook, adding pressure to conclude the transaction swiftly.
Access Bank faces headwinds at home and abroad
Access Bank entered the South African market in 2021 through the acquisition of Grobank, positioning the move as part of its broader pan-African expansion strategy.
However, the lender remains a relatively small player in South Africa’s highly competitive banking sector.
The collapse of the Bidvest deal comes at a delicate time for the Nigerian banking group, as it navigates internal leadership changes at its South African subsidiary.
Local media reports indicate that the unit’s chief executive is expected to exit, alongside the departure of other senior executives.
The setback also unfolds against the backdrop of Nigeria’s Central Bank-mandated recapitalisation exercise, which has placed significant funding and execution pressure on banks pursuing regional expansion.
Focus shifts as timelines tighten
Bidvest said it remains confident it will complete the disposal of its financial services assets and accelerate transaction timelines as it sharpens its focus on its core operations, according to a report a by BusinessDay.
Source: Twitter
For Access Bank, the failed acquisition underscores the growing complexity of cross-border banking deals at a time when regulatory scrutiny, capital requirements and execution risks are intensifying across Africa’s financial landscape.
Two Nigerian banks acquire Kenyan lenders
Legit.ng earlier reported East Africa is fast becoming the new battleground for Africa’s biggest banks, and Kenya sits firmly at the centre of the fight.
In the space of a single week, two major moves signalled a decisive shift in continental banking strategy, as Nigerian and South African lenders doubled down on Kenya to anchor their pan-African ambitions.
The updated recapitalisation deadline of 31 March 2026 has placed pressure on banks across the industry to shore up their capital base.
Source: Legit.ng
