South Africa’s Nedbank Group has completed its acquisition of a 66% controlling stake in Kenya’s NCBA Group in a deal initially valued at $856 million, expanding its presence in East Africa and linking its Southern African operations with one of the region’s largest banking groups.
The transaction follows regulatory approvals and makes NCBA a subsidiary of Nedbank, while the remaining 34% of NCBA shares will continue to be held by public investors on the Nairobi Securities Exchange (NSE).
NCBA operates in Kenya, Uganda, Tanzania, Rwanda, Ivory Coast and Ghana, serving more than 60 million customers through 122 branches, according to the lender.
The acquisition gives Nedbank access to East African markets through a group with established digital banking, corporate banking, asset finance and investment banking operations. Nedbank has physical operations across Southern Africa and offshore centres in London, Dubai, the Isle of Man and Jersey.
“This landmark transaction establishes a significant presence for Nedbank in East Africa and marks a decisive step forward in our African growth strategy,” Nedbank Chief Executive Jason Quinn said.
NCBA Chief Executive John Gachora said the investment would strengthen the lender’s ability to expand across the region and develop more sophisticated financial products.
The offer attracted tenders for 1.316 billion NCBA shares, representing 79.90% of issued shares, after the offer period closed on July 10. Nedbank scaled back excess applications to achieve its targeted 66% holding, NCBA said.
NCBA shares are scheduled to be suspended from trading from around the close of business on Oct. 21 until Nov. 2 to allow reconciliation of the share register. The transfer of shares to Nedbank and settlement of payments to shareholders are scheduled for Nov. 3.
NCBA said it would retain its brand, Nairobi headquarters, local leadership and existing customer-facing operating model. Products, branches and digital banking channels will remain unchanged.
The companies did not disclose specific financial targets, expected cost savings or a timetable for integrating additional products and services in the completion announcement.
