In line with its expansion drive, foremost financial institution, Access Bank has declared a full 100% acquisition of Kenya’s Transnational Bank Plc and its 28 branches, as the Central Bank of Kenya (CBK) gave its final nod.
According to the report, the acquisition takes effect February 1, 2020, after receiving approval from Central Bank of Kenya (CBK) on December 24, 2019. CBK said that the acquisition. is expected to “drive Transnational Bank Plc’s business growth for the benefit of the Kenyan economy and the banking sector.”
In a statement, the Kenyan bank regulator, CBK, stated that, “Access Bank Plc’s business model mainly focuses on corporate and retail banking and its strong group support is expected to drive Transnational Bank Plc’s business growth for the benefit of the Kenyan economy and the banking sector.”
According to CBK, the acquisition is expected to strengthen the resilience of Kenya’s banking sector, which has been opened to merger and acquisition of various banks. The country has recorded merger between NIC Group Plc and Commercial Bank of Africa Limited, and KCB Group Limited’s acquisition of National Bank of Kenya Limited.
Kenya’s Central Bank has been pushing for a merger between the country’s banks because it has more banks per person than South Africa and Nigeria. Kenya has a population of 50 million with about 40 banks. The drive for consolidation had led SBM Holdings Ltd of Mauritius to acquire some of the assets of Chase Bank Kenya Limited and the entire capital of Fidelity Commercial Bank Limited.
With this move by Access Bank, it now has operation in Kenya like its Nigerian counterparts, Guaranty Trust Bank (GTBank) and United Bank of Africa (UBA).
Notably, following its acquisition of Diamond Bank in a $235 million deal, Access became Nigeria’s biggest lender last year, a move insider said was meant to create Africa’s largest bank by customers.