Talks on for Access Bank to acquire Diamond Bank

Access Bank is set to add Diamond Bank’s portfolio to its assets in the next few months, The Nation has learnt.

Talks on the acquisition are on, according to sources, who said the fusion is set for the first quarter of next year.

It was gathered that both financial institutions have reached an agreement in broad terms on the acquisition. What is left is the valuation of assets, with a view to determining the level of compensation and systems’ integration, the sources said, pleading not to be named because they are not allowed to talk to the media on the matter.

It was learnt that the development leading to the impending acquisition was triggered by Diamond Bank directors who approached Access Bank for intervention in a bid to stave off a possible regulatory intervention that could lead to the withdrawal of the lender’s operating licence in the light of the bank’s depleting capital adequacy ratio on account of a huge Non Performing Loans (NPLs) portfolio put at over N150billion.

The Nation gathered that Access Bank directors examined the proposal and, after series of meetings and evaluations, accepted to acquire the entity. However, the agreement so far reached, it was understood, will not alter the name of Access Bank nor its management structure.

The Nation, November 12, 2018

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