The merger between the Zambian subsidiary of Access Bank Plc and Cavmont Bank Limited is expected to take place before the end of this month.
The top financial institution in Nigeria confirmed this on Wednesday in a statement issued to the Nigerian Stock Exchange (NSE), where it trades its securities.
Last year, Access Bank said it was in merger talks with Cavmont Bank, a lender located in Lusaka, the capital of Zambia, which provides an array of banking services including in the areas of community banking, retail banking, investment, and corporate banking.
Access Bank has never hidden its intention to become the biggest bank in Africa and acquiring Cavmont, one of the major players in Zambia, was in line with its expansion strategy.
Yesterday, the Nigerian bank gave an update on the transaction, disclosing that it has completed the acquisition after meeting regulatory requirements.
The next step, according to a statement issued by the company secretary, Mr Sunday Ekwochi, is to finalise the merger and begin to operate as a single entity and drop the Cavmont brand like it did with Nigeria’s Diamond Bank in March 2019.
Access Bank disclosed in the notice on Wednesday that its Zambian subsidiary will become a stronger and well-capitalised banking franchise with improved scale and capacity to deliver sustainable and best-in-class financial services to the market, describing its presence in the country as strategic.
“Sequel to our announcement, the board of Access Bank Plc announces that its Zambian subsidiary, Access Bank (Zambia) Limited has completed the acquisition of Cavmont Bank Limited, following fulfilment of the key conditions precedent including regulatory approvals.
“The merger of Cavmont into Access Bank Zambia is expected to take place before the end of January 2021, following which Access Bank Zambia will emerge as a stronger and well-capitalised banking franchise with improved scale and capacity to deliver sustainable and best-in-class financial services in the Zambian market.
“Growing our presence in Zambia remains a strategic priority for Access Bank and with the conclusion of the proposed merger with Cavmont, the bank looks forward to realising the synergies from the transaction and achieving further growth of the combined platform to the benefits of all stakeholders,” the statement said.
SOURCE: BUSINESS POST
