Following the completion of its acquisition of a majority stake in Finibanco Angola, Access Bank, said it has reached an agreement with Standard Chartered Bank which will enable it acquire its shares in the Angola, Cameroon, The Gambia, and Sierra Leone subsidiaries as well as its Consumer, Private and Business Banking business in Tanzania.
This is the latest in the serires of acquisitions embarked on by Access Bank as part of moves to expand its African reach. The planned acquisition was confirmed by both Access Bank and Standard Chartered Bank although the transaction remains subject to the approval of the respective local regulators and the banking regulator in Nigeria.
The announcement was made yesterday at Standard Chartered’s Headquarters in London in the presence of senior representatives from both banks and was signed by, Regional Chief Executive Officer, Africa & Middle East, Standard Chartered Sunil Kaushal and Group Managing Director, Access Bank Plc, Roosevelt Ogbonna.
According to the statement Access Bank and Standard Chartered will work closely together in the coming months to ensure a seamless transition, with the transaction expected to be completed over the next 12 months.
Commenting on the agreement, Standard Chartered’ Kaushal said: “Following on the announcement we made in April last year, the project is now substantially completed with the announcement for the sale of the 5 markets and the furtherance of a partnership with Access Bank. This strategic decision allows us to redirect resources within the AME region to other areas with significant growth potential, ultimately enabling us to better support our clients. We look forward to working closely with Access Bank’s team over the coming months to achieve a successful conclusion to this transaction while safeguarding the interests of our valued clients and prioritising our employees.”
On his part, Ogbonna of Access Bank stated: “At Access Bank, we are committed to reshaping the global perception of Africa and African businesses, even as we continue to build toward our vision to be the World’s Most Respected African Bank. Our 5-year growth plan will see us build a world-class class payments gateway leveraging the power of technology and supported by a dynamic ecosystem of local and international partnerships, enabling us to serve global payments and remittances efficiently. With our recent European expansion and our deepened presence in key trading corridors across Africa, we will bridge the gap between cross-border and domestic transfers across all business segments. More importantly, we are committed to impacting our host communities positively.
The transaction marks a significant milestone for Access Bank as it advances towards establishing a robust global franchise, centered around facilitating seamless payments, investment, and trade as a prominent gateway within the public sphere
Also, as part of this divestment strategy, Standard Chartered had in April 2022 revealed plans to divest from several markets, including Lebanon, Angola, Cameroon, Gambia, Sierra Leone, Zimbabwe, and Jordan. Additionally, the bank planned to exit the CPBB (Consumer Private and Business Banking) business in Côte d’Ivoire and Tanzania. recently announced the sale of its business in Zimbabwe in June and in Jordan in March of this year.
With the latest announcement, Standard Chartered has achieved significant progress in completing the divestment process for the markets identified in April 2022. However, the bank noted that they are actively engaging in discussions with potential buyers for the sale of its CPBB business in Côte d’Ivoire.
Ogbonna furthered that “At Access Bank, we are committed to reshaping the global perception of Africa and African businesses, even as we continue to build toward our vision to be the World’s Most Respected African Bank. Our 5-year growth plan will see us build a world-class class payments gateway leveraging the power of technology and a robust network of relationships across our operating countries. This will be supported by a dynamic ecosystem of local and international partnerships, enabling us to serve global payments and remittances efficiently. With our recent European expansion and our deepened presence in key trading corridors across Africa, we will bridge the gap between cross-border and domestic transfers across all business segments. More importantly, we are committed to impacting our host communities positively.”
In April 2022, Standard Chartered decided to divest from a number of markets, namely Lebanon, Angola, Cameroon, Gambia, Sierra Leone, Zimbabwe and Jordan, and to exit the CPBB (Consumer Private and Business Banking) business in Côte d’Ivoire and Tanzania. The Bank announced its sale of its business in Zimbabwe earlier in June and in Jordan in March this year. With this announcement, Standard Chartered has substantially completed the divestment process from the markets announced in April 2022, except Côte d’Ivoire where it remains actively engaged in discussions with potential buyers for the sale of its CPBB business in the country.
