CBN okays Access, Diamond banks merger, as share prices surge

The Central Bank of Nigeria (CBN) has approved the merger of Diamond Bank with Access, returning a no Objection verdict.

The CBN gave the approval in a letter dated 17 December, 2018 and addressed to the Managing Director/CEO of Access Bank Plc.

The letter, signed by the Director of Banking Supervision, Mr. Ahmad Abdullahi, said it had no objection to the proposal, advising the commercial bank to proceed to obtain other necessary regulatory approvals for the merger.

The CBN letter stated: “We refer to your letter dated December 17, 2018 on the above subject (application for pre-merger) and write to inform you that the Central Bank of Nigeria has no objection to your proposed merger with the Diamond Bank Plc.

“Furthermore, you are required to obtain other necessary regulatory approvals for the merger.”

And in a tacit approval by investors, there were positive reactions at the stock market, as the share prices of both banks surged at the close of trading on Monday.

The Securities and Exchange Commission, SEC, has however said it is waiting for formal application from the banks on the merger.

The commission however said it is aware of the intention of the banks to go into a merger.

Read also: Diamond, Access Banks Merge

“Access Bank and Diamond Bank have both notified the commission and the general public. It is a notice to merge, they have not merged yet. SEC is awaiting their application on the matter. The SEC received on Monday, December 17, 2018, notice of intention by Diamond Bank & Access Bank to merge. The commission is currently waiting for their formal application,” SEC said in a statement.

At the close of trading on the Nigerian Stock Exchange, NSE, in Monday, while Diamond Bank Plc appreciated by 9.47 per cent from N0.95 to N1.04, Access Bank Plc went up by 9.40 per cent from N7.45 to close at N8.15.

Investors traded 70.984 million units of Diamond Bank Plc shares worth N72.643 million, while they exchanged 13.615 million units of Access Bank Plc for N108.550 million.

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