Access Bank Plc, a subsidiary of Access Holdings Plc has completed the acquisition of African Banking Corporation of Tanzania (ABCT).
This was revealed in a corporate notice accessed by Nairametrics. According to the notice, Access Bank announced the acquisition of ABCT on July 14, 2023.
However, the acquisition of the majority stake was just completed recently.
ABCT will also be merged with the consumer, private, and banking divisions of Standard Chartered Bank Tanzania, which Access Bank is currently in the process of acquiring. Following the merger, the combined entity will operate under the name Access Bank Tanzania.
Commenting on the transaction, Roosevelt Ogbonna, the Managing Director of Access Bank Plc noted that the acquisition was critical to the bank's entry to the East African market.
He noted, "This strategic move represents a notable step towards setting a railroad in Tanzania for intra-African trade within the East African region, Africa and the rest of the world. It underscores our commitment to creating a robust East African banking network, driving positive change and innovation."
"We are excited about the opportunities this acquisition presents for our operations in Tanzania and are eager to leverage our combined strengths to deliver exceptional financial solutions and experiences to our customers."
About African Banking Corporation of Tanzania
African Banking Corporation of Tanzania is a subsidiary of Atlas Mara Limited, a financial services holding company listed on the London Stock Exchange. It is a part of the BancABC group, which is a subsidiary of Altas Mara.
Commenting on the acquisition of ABCT, the Managing Director of ABCT, John Imani noted,
"The completion of our transaction with Access Bank Plc, not only underscores the strong confidence of Access Bank in our operations and the Tanzanian market but delivers new and exciting opportunities for our customers, employees, and stakeholders. The new entity is poised to enhance our service offerings, leveraging Access Bank's extensive resources and expertise to deliver even greater value to our clients. We look forward to an exciting and prosperous future as part of the Access Bank family, driving economic growth and financial inclusion across Tanzania."
About Atlas Mara
The banking group, Atlas Mara, has faced significant challenges navigating the banking landscape in Africa. In its most recent financial statement, the 2022 financial results, Atlas Mara posted a net loss of $41.8 million.
The group also posted a loss before tax of $280.7 million in 2022, representing an 89% decline from the $31.9 million loss before tax posted in 2021.
In Nigeria, the group held a 49.55% stake in Union Bank of Nigeria. However, due to the acquisition of Union Bank by Titan Trust Bank in 2022, Atlas Mara incurred an impairment of $220 million.
The deal between Titan Trust Bank and Union Bank has now been stalled due to regulatory concerns.
The acquisition of ABCT makes it the fourth acquisition by Access Bank from Atlas Mara. In January 2024, Access Bank Zambia announced a complete acquisition of Atlas Mara Zambia, boosting Access Bank into one of the top five banks in Zambia.
In 2020, it was reported that Access Bank was in talks with Atlas Mara to acquire its businesses in Botswana, Zimbabwe, and Zambia.
However, currently, Access Bank Plc has taken over Atlas Mara assets in Mozambique, Zambia, Botswana, and Tanzania.
Access Bank
At the close of trading on June 10, Access Holdings gained 9.86% in the Nigerian Exchange, reaching N18.95. This year, the group has recorded a year-to-date decline of 18.1%.
However, as of Q1 2024, the group posted a profit after tax of N159.3 billion, representing 122% YoY increase from the N71.8 billion posted in Q1 2023. In 2023, Access Holdings recorded a pre-tax profit of N199.2 billion from its foreign subsidiaries.
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