Nigeria’s Central Bank halts Access Bank’s $100M NBK acquisition, despite Kenya and COMESA approvals, casting doubt on cross-border banking integration in Africa.
🏦 Deal Stalled by Nigerian Central Bank
Nigeria’s Central Bank (CBN) has unexpectedly frozen Access Bank Plc’s planned acquisition of Kenya’s National Bank of Kenya (NBK), despite approvals from Kenya’s Competition Authority and the COMESA Competition Commission.
The $100 million deal, announced in March 2024, was intended to strengthen Access Bank’s footprint in East Africa by leveraging NBK’s national branch network. It has now been thrown into uncertainty.
🔍 Deal Highlights
- Transaction Value: ~$100 million
- Valuation: 1.25× NBK’s book value
- Target: 77 branches across 28 counties in Kenya
- Seller: KCB Group Plc
- Buyer: Access Bank Plc
✅ Approved Regionally, Blocked Nationally
Kenya’s Competition Authority (CAK) gave the green light on the condition that:
- At least 80% of NBK employees are retained
- NBK remains a separate legal entity for at least one year
The COMESA Competition Commission also found the deal posed no threat to competition or public interest within the regional trading bloc.
However, the CBN’s intervention—reportedly tied to Access Bank’s other foreign operations, especially in the Democratic Republic of Congo (DRC)—has put everything on hold.
🌍 Broader Implications
This delay poses key questions:
- Can African regulators coordinate effectively on cross-border transactions?
- Will Access Bank divest from DRC to meet Nigeria’s conditions?
- How does this impact KCB Group’s strategy to shed non-core assets?
According to industry insiders, the CBN’s concerns relate to Access Bank’s exposure in high-risk markets, despite Access Bank Congo being profitable.
Learn how Access Bank’s African expansion strategy could be affected.
🔄 Current Status
- NBK remains under KCB Group ownership
- Access Bank continues operating in Kenya, where it acquired Transnational Bank in 2020
- Regulatory dialogue is ongoing, with no fresh timeline announced for deal closure
📎 Related Internal Links
- KCB’s Strategic Divestments Explained
- Access Bank’s Expansion Moves in East Africa
- Why COMESA Approvals Matter for M&A
- Challenges of Cross-Border Banking in Africa
