Access Bank buys Mozambique’s African Banking Corporation — fifth acquisition in 4 years

Access Bank Plc, Nigeria’s biggest bank by customer base, has completed the acquisition of African Banking Corporation in Mozambique, backed by a London Stock Exchange-listed group, Atlas Mara Limited.

This is the bank’s fifth acquisition in four years.

In 2018, the lender acquired Diamond Bank through a merger and acquisition deal, completed in 2019.

In the fourth quarter of the same year, it acquired Transnational Bank (Kenya) Plc.

In August 2020, the bank also announced the acquisition of Cavmont Bank Limited through a merger deal and finalised the process in January 2021.

It has also acquired Grobank in South Africa and now completed the acquisition of Mozambique’s African Banking Corporation.

In a corporate filing on Tuesday, Sunday Ekwochi, Access Bank secretary, said Access Mozambique will now move towards integrating and merging BancABC Mozambique into its operations, “which is expected to create the seventh-largest bank in the Mozambican banking market.”

“We are pleased with the completion of this acquisition which significantly strengthens our banking franchise in Mozambique and represents a transformational step in our growth plans in the country and the broader Southern Africa region,” Herbert Wigwe, CEO of Access Bank, said.

“We are building the scale necessary to compete effectively and efficiently in key African markets outside Nigeria and ensure we sustainably deliver a strong return on invested capital in our Africa expansion. Scale is an important contributor to returns, and this transaction is consistent with our rigorous efforts to create a strong presence with scale across Africa, and in line with our vision to be World’s Most Respected African Bank.”

With the new deal, Access Bank Plc took advantage of the strategic review and restructuring of Atlas Mara in Africa. Two weeks ago, the financial services holding company announced assets sales in Botswana after completing deals in Mozambique, Rwanda, and Tanzania.

Access Bank Plc, Nigeria’s tier-1 bank, is also finalising regulatory approvals to acquire 78.15 per cent shareholding in the African Banking Corporation of Botswana Limited (BancABC Botswana).