Access Bank advances African expansion as Zambian subsidiary acquires Atlas Mara Zambia

By Onome Amuge

Access Bank Zambia Limited, a subsidiary of Access Bank Holdings Plc, has received final regulatory approval from the Central Bank of Zambia for the acquisition and merger of African Banking Corporation Zambia Limited, also known as Atlas Mara Zambia, into its existing operations.

This was confirmed in a statement by Sunday Ekwochi, the company secretary, noting that the development was further to its announcement on October 25,2021. Moreso,the Central Bank of Nigeria (CBN) and Common Market for Eastern and Southern Africa Competition Commission had earlier granted their “no objection” to the transaction in 2022.

African Banking Corporation Zambia Limited in a corporate document sent to shareholders,dated March 23, 2023,also confirmed the negotiation with Access Bank, adding that its Zambian subsidiary has obtained approval from the Central Bank of Zambia to proceed with the acquisition.

“Further to its announcement on October 25, 2021, Access Holdings Plc (Access Holdings) is pleased to announce that Access Bank Zambia Limited (“Access Zambia”), a subsidiary of its flagship subsidiary, Access Bank Plc , has received final regulatory approval from the Central Bank of Zambia for the acquisition and merger of African Banking Corporation Zambia Limited (“Atlas Mara Zambia”) into its existing operations (‘the Transaction’).

“The Central Bank of Nigeria and Common Market for Eastern and Southern Africa Competition Commission had earlier granted their “no objection” to the Transaction in 2022.

“Access Zambia will now move towards integrating and merging Atlas Mara Zambia into its operations, which is expected to create one of the top five banks in Zambia,” the statement read.

Having obtained the necessary approvals, Access Bank disclosed that the deal is expected to be completed in the third quarter (Q3) of 2023.

Following the development, Access Zambia will now move towards integrating and merging Atlas Mara Zambia into its operations, which is expected to create one of the top five banks in the East African country.

The move by the Nigerian lender is also part of  a series of acquisitions across Africa to boost its bottomline and increase access to more liquidity and assets outside the shores of Nigeria.

Commenting on the transaction, Herbert Wigwe, Group chief executive Access Holdings, said the transaction builds on the earlier acquisition and merger of Cavmont Bank Plc into Access Bank Zambia and underscores the company’s resolve to strengthen its presence in Zambia, a key African market that fits into its strategic focus on geographic earnings growth and diversification.

“The combination of the two banks will create significant synergies between Access Zambia’s world class wholesale and transaction banking capabilities and Atlas Mara Zambia’s market leading retail and public sector capabilities to form a market leading universal banking platform that will greatly impact the Zambia market,” Wigwe said.