Nairobi, Sept. 18, 2024 – The Common Market for Eastern and Southern Africa (COMESA) has approved a merger between Access Bank and the National Bank of Kenya (NBK), providing the Nigerian lender with a platform for East African region expansion.
The proposed transaction involves the acquisition of 100 percent of NBK’s issued share capital from its parent company, KCB Group, by the West African-based financial institution.
As part of the deal, Access Bank will also control NBK’s subsidiaries, including NBK Bancassurance Intermediary Limited and KCB Asset Management Limited.
“The CID determined that the merger is not likely to substantially prevent or lessen competition in the Common Market or a substantial part of it, nor will it be contrary to public interest,” said the Commission’s Chairperson, Mahmoud Momtaz.
“The CID further determined that the transaction is unlikely to negatively affect trade between Member States. The CID, therefore, approved the transaction,” he added.
An assessment to ensure that the merger would not negatively affect competition or public interest within the Common Market was similarly done.
The Commission concluded that the banking markets in Kenya, the DRC, Zambia, and Rwanda are highly fragmented, with numerous players holding varying market shares.
This, coupled with the presence of other competitors, would prevent the merger from reducing competition or enabling coordinated action that could harm the market.
The review also involved input from third-party organisations, such as the Commission Nationale de Concurrence in the DRC, which confirmed that the transaction raised no public interest or competition concerns.
Consequently, the Commission determined that the merger was unlikely to substantially lessen competition or negatively affect trade among COMESA member states.
Access Bank, which has a footprint in several African countries, including Kenya, Zambia, Rwanda, and the DRC, sees Kenya as a critical market for its broader strategy of local and regional extensions.
