Access Bank PLC will consolidate its entry into the East African market after acquiring the African Banking Corporation of Tanzania (ABCT) bank, a subsidiary of Atlas Mara Ltd.
In a notice seen by The Kenyan Wall Street, Access Bank has completed the acquisition deal that was set in motion since July last year. ABCT will be merged with Standard Chartered Bank Tanzania, which was also about to be acquired by Access Bank – in order to create an official institution under the name of Access Bank Tanzania. In March this year, Access Bank purchased 100% of the National Bank of Kenya from KCB bank, a second ownership after acquiring Transnational Bank in 2019. “This strategic move represents a notable step towards setting a railroad in Tanzania for intra-African trade within the East African region, Africa and the rest of the world. It underscores our commitment to creating a robust East African banking network, driving positive change and innovation,” said Roosevelt Ogbonna, Managing Director of Access Bank Plc.
Access Bank is targeting new markets to ramp up their continental revenues, as well as capitalizing on payments, credit, and trade opportunities in the growing regional market.
“We are excited about the opportunities this acquisition presents for our operations in Tanzania and are eager to leverage our combined strengths to deliver exceptional financial solutions and experiences to our customers,” said Roosevelt Ogbonna.
Since 2022, Atlas Mara has encountered operational challenges in banking across Africa. This includes a net loss of US$ 41.8 million according to its 2022 financial year report.
The company, listed in the London Stock Exchange (LSE), also sold Union Bank in Nigeria to Titan Trust Bank that same year, cratering their banking revenues even further and prompting the sale of a majority of their assets.
“The completion of our transaction with Access Bank Plc not only underscores the strong confidence of Access Bank in our operations and the Tanzanian market but also delivers new and exciting opportunities for our customers, employees, and stakeholders. The new entity is poised to enhance our service offerings, leveraging Access Bank’s extensive resources and expertise to deliver even greater value to our clients,” said Managing Director of ABCT, John Imani.
Access Bank also acquired various banking divisions belonging to Atlas Mara in Botswana, Zambia, and Zimbabwe since 2020. At the close of the acquisition deal yesterday, Access Bank’s stocks rose by more than 9% in the Nigerian Exchange. In its Q1 report this year, the bank posted profits after tax amounting to 159.3 billion Naira.
See Also:
KCB Inks Acquisition Deal for Atlas Mara’s 2 Banks to Increase Regional Footprint
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