Access Bank gets regulators’ nod to acquire new bank

The regulators of the banking sector in Nigeria and South Africa have given Access Bank approval to acquire South Africa- based lender, Grobank. 

Access Bank on Friday disclosed that it has secured the approval of the Central Bank of Nigeria (CBN), South African Reserve Bank (SARB) and other regulators Grobank, which started operations in South Africa in 1947.

This is a boost for the Nigerian most capitalised lender’s quest to capture the African financial market.

In a notice filed to the Nigerian Stock Exchange (NSE), Access Bank said the acquisition of Grobank, which gained repute for leading business banking service, was in line with its goal of becoming the main bank for Africa.

“Today’s announcement represents significant progress in delivering on our strategic intent of becoming Africa’s gateway to the world in pursuit of our vision to be the world’s most respected African bank.

“Our presence in South Africa will no doubt accelerate the attainment of our goal of delivering our More than Banking promise to 100 million unique customers across the continent.

“It will also build on our existing foundation and deliver enhanced value to our shareholders, employees and other stakeholders,” the GMD/CEO of Access Bank, Mr Herbert Wigwe, said of the development.

Access Bank has said the approvals of the South African and Nigerian regulatory authorities “constitute a significant milestone in the transaction which is expected to be completed in the second quarter of 2021 subject to the completion of other conditions precedent.”

In 2019, Access Bank merged with the defunct Diamond Bank, making it Nigeria’s largest lender.