Access Bank expands east African presence with merger deal in Zambia

In keeping pace with its rapidly expanding African footprint, Nigeria’s Access Bank Plc has signed an agreement with Atlas Mara Ltd to merge African Banking Corporation Zambia Ltd and its local subsidiary, Access Bank Zambia Ltd.

Group Managing Director/Chief Executive Officer, Dr Herbert Wigwe, disclosed the development in a notice to the Nigerian Exchange (NGX) Ltd. on Monday.

Upon completion of the transaction, Access Bank is expected to retain or increase its current shareholding in Access Bank Zambia, Wigwe disclosed.

He said after the merger the bank would have over 70 branches and agencies, approximately one billion dollars in total assets and over 300,000 customers in Zambia.

He said the transaction would require significant additional capital investment requirements from the bank given the capital and other synergies created from the merger between Access Bank Zambia with Cavmont Bank in 2020.

He explained that the proposed transaction was expected to be concluded in 2022, subject to regulatory approvals in Nigeria and Zambia.

“This transaction represents another milestone that brings us closer to the achievement of our broader strategic objectives.

“The merger of the Atlas Mara Zambia with Access Bank Zambia is expected to augment our presence in Zambia and the broader COMESA region, Africa’s largest free trade area,” he said.

He added that the management was particularly excited by the prospects of increased earnings contribution to the bank from the enlarged Access Bank Zambia.

Meanwhile, Mr Lishala Situmbeko, has been appointed Managing Director of Access Bank Zambia.

He brings over 25 years of cognate experience and deep local relationship into the bank’s Zambia operations.

“Today’s announcement is a testament to the strong confidence of the Zambia market in the Banks country and regional strategy as well as our strong confidence in the long-term prospects for the Zambia economy,” he added.