The Zambian financial market space could record a potential merger of two banks namely Access Bank and Lusaka Securities Exchange – LuSE listed Cavmont Capital Holdings Plc. This is according to correspondence shared with the Business Telegraph. Nigeria Stock Exchange – NSE listed Access Bank Plc announced that its whole owned subsidiary Access Bank Zambia Limited has officially entered into exclusive talks with Cavmont Capital Holding Zambia Plc listed on the Zambian bourse for the sale of 100% of Cavmonts interests.
Access Bank could be buying into Cavmont Capital existing growth. If this transaction succeeds, Access Bank Zambia’s balance sheet could potentially rally to sixth place in the 18 commercial bank industry. Access Bank Plc (NSE listed) has been on an aggressive path to increase its Pan African footprint following key acquisitions such as the Diamond Bank takeover and as such extended this to Southern Africa with the intention widen its footprint in Zambia.
Access Bank Zambia has the technology grip leveraging off the digitization level of the Nigerian market which it intends to embed into the DNA of Cavmont Capital’s 18 branch presence as it simultaneously buys into already existing growth. This will then widen the competitive landscape of the Zambia commercial banking industry by strengthening capitalization, achieving technology synergies and positively disrupting the financial services landscape.
Shareholders of Access Bank Plc have been advised to exercise caution in trading until a full announcement is made.
The Kwacha Arbitrageur