Herbert Wigwe, the Chief Executive Officer of Access Bank, has completed another acquisition outside the shores of Nigeria after sealing the deal to takeover African Banking Corporation, which is situated in Mozambique.
The Southern African lender was acquired from Atlas Mara Limited, an investment company which owns Union Bank of Nigeria. Access Bank plans to merge African Banking Corporation with its subsidiary in Mozambique.
The value of the deal wasn’t disclosed, but the acquisition gives Herbert Wigwe-led company a majority share in African Banking Corporation which is expected to rebrand and take the name of the Nigerian lender.
In a statement released to the trading public, the Mozambique financial institutions will be integrated into Access Bank’s operations, a move that will make the merger the seventh largest bank in the country’s banking market.
Commenting on the acquisition, Wigwe said, “We are pleased with the completion of this acquisition which significantly strengthens our banking franchise in Mozambique and represents a transformational step in our growth plans in the country and the broader Southern Africa region.
“We are building the scale necessary to compete effectively and efficiently in key African markets outside Nigeria and ensure we sustainably deliver strong return on invested capital in our African expansion.
“Scale is an important contributor to returns and this transaction is consistent with our rigorous efforts to create a strong presence with scale across Africa, and in line with our vision to be the World’s Most Respected African Bank.” Wigwe stated.
The acquisition of African Banking Corporation comes two weeks after Access Bank acquired Grobank Limited, a South African financial institution.
Also, Atlas Mara is planning to sell Union Bank just as it has sold African Banking Corporation.
By Fakoyejo Ayodeji
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