ZAMBIA – The management of Access Bank Plc has announced that its Zambian subsidiary has completed the acquisition of Cavmont Bank Limited.
The bank said the acquisition followed the fulfilment of key conditions, including regulatory approvals.
Access bank made this known in a disclosure notice sent to the Nigerian Stock Exchange (NSE).
In July 2020, Access Bank in Nigeria announced plans by its Zambian subsidiary to acquire Cavmont Bank Limited, a subsidiary of Cavmont Capital.
The bank said at the time that it had “entered into exclusive discussions” with Cavmont Capital Holdings Zambia Plc regarding the potential transaction between Access Bank Zambia and Cavmont Bank Limited, a wholly-owned subsidiary of Cavmont Capital.
“The merger of Cavmont into 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,” the notice read.
“The merger of Cavmont into 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 benefit of all stakeholders.”
In January, Access Bank entered into a merger agreement with Cavmont Bank Namibia as it plans to eventually expand into 22 African countries to cushion challenges in some markets, diversify earnings and take advantage of growth opportunities in the region.
According to Access Bank chief executive officer, Herbert Wigwe, the recent move to establish itself across Africa is to expand to high-potential markets to leverage the benefits of the African Continental Free Trade Area.
The Lagos headquartered lender is currently operating in 12 countries following a series of acquisitions ranging from Kenya to its home market, Nigeria.
The lender, which is looking to transition to a holding company this year, plans to open subsidiaries in insurance brokerage, consumer lending and agency banking, as well as payments to boost revenue.
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