Nigeria?s Access Bank Plc. has offered to acquire Bidvest Bank Holdings Limited to help the country?s biggest lender by assets expand in South Africa.

The purchase is expected to move Access Bank, a unit of Access Holdings Plc., closer to its 2027 goal of becoming one of the continent?s largest lenders.

In a statement yesterday, the bank said the acquisition supports its ambition to expand across Africa and solidify its presence in key markets, with South Africa being a top priority.

Although the statement did not indicate the value of the transaction, a Bloomberg report put it at about 2.8 billion rand or roughly $159 million.

The statement signed by the bank?s Managing Director, Roosevelt Ogbonna added that the binding agreement for the acquisition of a 100 per cent equity stake in Bidvest, reflects the bank?s commitment to strengthening its footprint in South Africa.

In addition , it said it will help in consolidating its position as the continent?s gateway to global markets as it seeks to optimise the benefits of recent acquisitions and accelerate its transition towards a greater focus on efficiencies.

Founded in 2000, Bidvest Bank is a niche and profitable South African financial institution providing a diverse range of services, including corporate and business banking solutions and diverse retail banking products.

As of its financial year ended June 2024, Bidvest Bank reported total assets equivalent to $665.0 million and audited profit before tax of $20.0 million.

The acquisition is expected to close in the second half of 2025, subject to regulatory approval, Access Bank said in the statement.

Upon conclusion of the acquisition, Bidvest Bank will be merged with the Bank?s existing South African subsidiary to create an enlarged platform to anchor the regional growth strategy for the SADC region, it added.

Commenting, Access Bank?s Managing Director, Ogbonna said: ?This acquisition supports our ambition to expand across Africa and solidify our presence in key markets, with South Africa being a top priority.

?It underscores our commitment to establishing a more resilient, diversified, and sustainable business model that leverages technology to meet evolving customer needs.

?Bidvest Bank provides a unique opportunity to blend its strong local expertise with Access Bank?s robust trade and retail banking capabilities, creating a platform for long-term growth and value creation.?

Chief Executive of Bidvest Group, Mpumi Madisa, said: ?As a well-respected, experienced, and prominent financial services entity, I am pleased that Access Bank meets our objectives and provides reassurance for the continued sustainability and prosperity of the bank.

?It will enable the bank to advance, scale, and sustainably grow in today?s fast-changing, technology-driven, and highly competitive sector.?

The transaction, Access Bank said, aligns with its expansion objective to build the scale needed to become a major player in its market.

By leveraging Bidvest Bank?s robust local capabilities and Access Bank?s established pan-African presence, Access said it will have increased capacity for intra- and inter-Africa trade, connecting businesses and creating new opportunities for regional integration.

The Nigerian bank is on an ambitious five-year growth plan that seeks to double the share of assets outside its home market by 2027 and rank among Africa?s five biggest banks.

It has operations in about 23 countries including the United Arab Emirates and the UK, servicing more than 60 million customers in three continents.

On December 10, it started a unit in Malta after receiving approvals from the European Central Bank (ECB) and the Malta Financial Services Authority.

In July, Bidvest said it would dispose of its financial-services businesses to focus on what it deems to be its primary operations of hygiene, facilities management and product distribution. (THISDAY)

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