Access Bank Plc has taken a bold step in expanding its strategic presence in Africa with the acquisition of Standard Chartered’s majority shareholding in its subsidiaries in Angola, Cameroon, The Gambia, and Sierra Leone.
Access Bank is also set to take over Standard Chartered’s Consumer, Private and Business Banking (“CPBB”) business in Tanzania.
The Nigerian lender has also entered into a definitive agreement for the acquisition of majority equity stake in African Banking Corporation (Tanzania) Limited (“BancABC Tanzania”).
BancABC Tanzania, a full-service commercial bank with over two decades of operations in Tanzania, is expected to consolidate the CPBB business onto its platform.
Access Bank and Standard Chartered Bank have entered into agreements for the transactions waiting for regulatory approvals in Nigeria, Angola, Cameroon, The Gambia, Sierra Leone, and Tanzania.
Exotix Advisory acted as Financial Adviser while DLA Piper acted as Legal Adviser to Access Bank on the Standard Chartered transaction.
The transactions, according to the bank, present an opportunity for Access Bank to deepen its operations in existing and new countries of presence across Africa.
In anticipation of completion of the Transactions, Access Bank has made excellent progress in integration planning and will work in the coming months with Standard Chartered and BancABC Tanzania to ensure a seamless integration.
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The Transactions are expected to be completed over the next 12 months.
Tanzania’s banking regulator has granted its approval in favour of the BancABC Tanzania acquisition and further regulatory approvals are anticipated in due course for the Transactions, including from the Central Bank of Nigeria.
The announcement was made on Friday at Standard Chartered’s Headquarters in London, by the Regional Chief Executive Officer, Africa & Middle East, Standard Chartered, Sunil Kaushal, and the Group Managing Director, Access Bank Plc, Roosevelt Ogbonna.
The statement said: “The agreement with Access for the sale of the bank’s business in Sub-Saharan Africa is in line with Standard Chartered’s global strategy, aimed at achieving operational efficiencies, reducing complexity, and driving scale.
“Access Bank will provide a full range of banking services and continuity for key stakeholders including employees and clients in the Standard Chartered businesses across the five aforementioned countries.
“Access and Standard Chartered Bank will work closely together in the coming months to ensure a seamless transition, with the transaction expected to be completed over the next 12 months.”
Speaking on the agreement, Kaushal said: “Following on the announcement we made in April last year, the project is now substantially completed with the announcement for the sale of the five markets and the furtherance of a partnership with Access Bank.
“This strategic decision allows us to redirect resources within the AME region to other areas with significant growth potential, ultimately enabling us to better support our clients.”
Access Bank’s Ogbonna said: “We are pleased to sign this agreement today and express our appreciation for being selected as the preferred partner to Standard Chartered Bank through this transaction, in which it is exiting four African markets and refocusing in one.
“As a distinguished regional and international bank with a rich heritage spanning over 150 years, Standard Chartered Bank has built a solid presence in these markets for over 100 years.”
Commenting on the Transactions, Dr. Herbert Wigwe, Group Chief Executive of Access Holdings said: “The Transactions mark a significant leap forward for Access Bank and reinforces our strategy of strengthening our footprint across Sub-Saharan Africa to harness synergistic opportunities for sustainable income diversification and profitability. We remain committed to our five-year strategy, which envisions our banking subsidiary emerging as a true leader in banking services across the African continent.”
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