Access Bank, a leading Nigerian financial institution, has received regulatory approval from the Kenya Competition Authority to acquire the National Bank of Kenya (NBK) from KCB Group.
Consequently, Access Bank has to retain 80% of NBK’s employees for at least a year.
“The transaction has been approved on condition that Access Bank Plc retains, for a period of one (1) year following completion of the transaction, at least of 80% of the target’s current workforce and all Access Bank (Kenya) Plc employees, its local subsidiary,” CAK said in a statement.
National Bank currently has 1,384 employees, while Access Bank’s Kenyan subsidiary has 316 staff members.
“However, the merging parties have committed to compensating employees whose contracts will be terminated in accordance with the Employment Act and other applicable labour laws,” CAK adds.
The acquisition aligns with Access Bank’s broader strategy to expand its footprint in East Africa and solidify its position as a regional financial powerhouse.
The authority estimates that the merged entity will have a combined market share of 1.9% once the acquisition is complete.
“The combined market size is unlikely to raise competition concerns since it is low. Additionally, the merged entity will face competition from the other banks in the market,” CAK said.
“The merged entity will face competition from the other banks in the market. Based on the foregoing, the proposed transaction is unlikely to lead to a substantial lessening or prevention of competition in the market.”
The deal is subject to final approvals from the Central Bank of Kenya. The deal already received approval from the COMESA Competition Commission for markets outside of Kenya.
The commission, after careful consideration, determined that the deal was not likely to substantially harm competition within the Common Market.
KCB Group, while disappointed with the erosion of gains from its 2019 acquisition of NBK, views the sale as a strategic move to maximize shareholder value and strengthen its competitive position.
This acquisition marks a significant milestone for both Access Bank and the Kenyan banking industry.
Beyond Kenya, Access Bank is actively pursuing its expansion plans in the East African region. The acquisition of Finance Trust Bank in Uganda is another significant step in this direction.
