Access Bank Confirms Collapse of Deal To Take Over South African Bank Despite Reaching Agreement
- Access Bank has disclosed that it could not complete its deal to take over Bidvest Bank in South Africa
- The bank confirmed that the deal has broken down, but insists on continuing plans to expand in South Africa
- The bank’s managing director, Roosevelt Ogbonna, has commented on the development and the next step
Legit.ng journalist Dave Ibemere has experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Access Holdings Plc has announced that the proposed acquisition of South Africa’s Bidvest Bank by its subsidiary, Access Bank Plc, has expired without completion.
The bank, in a statement published on its website on Tuesday, February 10, said that the deal had collapsed after failing to obtain regulatory approvals.
Source: Getty Images
The acquisition, first announced on December 12, 2024, aimed for Access Bank to acquire 100% of Bidvest Bank.
Access Bank said the long-stop date for completing the transaction, January 26, 2026, passed without all conditions, particularly regulatory approvals, being fully met.
The company said:
"The Bank had proposed to acquire 100% of Bidvest Bank in a transaction that commenced on December 12, 2024. The long-stop date by which all conditions required to complete the transaction expired on January 26, 2026, and certain conditions (including regulatory conditions) were not fully met.
The outcome reflects the complexities and extended timelines associated with multi-jurisdictional regulatory and transactional processes, rather than any change in the Bank’s strategic intent or assessment of the South African market."
Access Bank MD speaks
Commenting on the development, Access Bank Managing Director Roosevelt Ogbonna was upbeat that the bank's goals to expand into South Africa will continue:
He said:
“We remain constructively engaged with stakeholders on this transaction towards finding a potential path to closure. This initial outcome does not diminish our confidence in South Africa’s financial ecosystem.
"We remain focused on building Africa’s most respected financial institution, strengthening our trade finance capabilities and delivering long-term value to customers, partners and communities across all our markets. We thank the Board and Management of Bidvest for their patience and support throughout this process.”
Source: Getty Images
Access Bank noted that it will continue to explore opportunities to expand its footprint across Africa while reinforcing its existing operations in key markets.
In a similar 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, BusinessDay reports.
It noted:
“Unfortunately, certain conditions were not fulfilled by Access Bank by the agreed deadline, resulting in the termination of the transaction."
Access Bank buys Kenyan bank
Legit.ng earlier reported that the National Bank of Kenya Limited (NBK) acquired Access Bank Plc from KCB Group PLC (KCB Group).
The bank said in a statement on Friday that the development signifies the conclusion of a transaction that began in March 2024 and that all regulatory approvals typically required for such a transaction have been obtained.
As a result, Access Bank Plc now owns all of NBK, which was formerly controlled by the KCB Group. Until all merger procedures are completed, NBK and Access Bank Kenya will continue to operate independently.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
