Access Bank to merge Zambian subsidiary with African Banking Corporation

Access Bank Plc says it has signed an agreement with Atlas Mara Limited on a proposed merger between African Banking Corporation Zambia Limited (Atlas Mara Zambia) and Access Bank Zambia Limited.

The bank announced this in a statement signed by Sunday Ekwochi, the company secretary, on Monday.

This development comes weeks after the bank acquired a majority stake in BancABC Botswana — its fourth acquisition in 2021.

Upon completion of the transaction, Ekwochi said the bank is expected to retain or increase its current shareholding in Access Bank Zambia. 

With the arrangement, the bank said it would have more than 70 branches and agencies with an approximate $1 billion total assets and over 300,000 customers in the country.

“The transaction will not require significant additional capital investment requirements from the bank given the capital and other synergies created from the merger between Access Bank Zambia with Cavmont Bank in 2020,” the statement reads.

“The proposed transaction is expected to be concluded in 2022, subject to the fulfilment of conditions including regulatory approvals in Nigeria and Zambia.”

Commenting on the proposed merger, Herbert Wigwe, group managing director/chief executive officer, Access Bank, said: “This transaction represents another milestone that brings us closer to the achievement of our broader strategic objectives.”

“The merger of Atlas Mara Zambia with Access Bank Zambia is expected to augment our presence in Zambia and the broader COMESA region, Africa’s largest free trade area.

“We are particularly excited by the prospects of increased earnings contribution to the bank from the enlarged Access Bank Zambia, which has also announced the appointment of a new Managing Director, Mr. Lishala Situmbeko, who brings over 25 years of cognate experience and deep local relationships into our Zambian operation.

“Today’s announcement is a testament to the strong confidence of the Zambian market in the Bank’s country and regional strategy as well as our strong confidence in the long-term prospects for the Zambian economy.”