Access Bank said that the acquisition of Transnational Bank is in line with its goal of becoming Africa’s gateway to the world besides establishing its footprint in major African markets
Nigeria-based Access Bank is set to complete 100% acquisition of Transnational Bank (TNB), a Kenya-based medium-sized commercial bank, following receipt of approval from the Central Bank of Kenya.
Access Bank also received all the final approvals from relevant regulatory bodies in Kenya pertaining to the transaction.
The Nigerian bank said that the acquisition is in line with its goal of becoming Africa’s gateway to the world besides establishing its presence in major African markets.
The deal also further complements its franchise in Rwanda, Zambia, and Congo DRC, said Access Bank.
Central Bank of Kenya said that the acquisition is likely to strengthen the resilience of the banking sector in Kenya.
Financial terms of the deal were not disclosed by the parties.
Transnational Bank focuses mainly on serving the agricultural sector
Transnational Bank began operations in late 1985 and has 28 branches across Kenya. The bank is primarily focused on the agricultural sector and is said to have a significant retail presence.
Transnational Bank holds assets worth KES10.2bn ($100m). In 2018, the Kenyan commercial bank registered a loss of KES71.8m ($0.71m), reported Leadership Newspaper Nigeria.
Access Bank group managing director Herbert Wigwe said: “We will leverage our presence in key payment corridors, strong partnerships in non-presence countries, robust technology platform as well as world-class risk management to provide cutting edge financial solutions to our clients.
“We will build on TNB’s existing expertise in agricultural financing and deploy our resources to optimise other business segments. We are committed to supporting the growth and development of our host community in line with our sustainability ethos and are certain that this acquisition will deliver great value to our stakeholders.”
In another development, Access Bank has been granted consent from Nigerian regulators to expand its business to Cameroon.
Incorporated in 1989, the Nigerian commercial bank has more than 600 branches and service outlets across 15 countries. Claimed to serve 32 million customers, the bank employs about 28,000 people and has assets worth $16.1bn.
In 2019, Access Bank acquired rival Nigerian bank Diamond Bank for $235m in a move to create the largest retail bank in terms of customers in Africa.