The central bank in Africa’s copper producer Zambia has approved the merger and acquisition (M&A) transaction of an amalgamation nature between Access Bank Group of Nigeria with Cavmont Capital Holdings Plc of Zambia. Cavmont (ISIN:ZM0000000227) is listed on the Lusaka Securities Exchange while Access Bank trades on the Nigerian Stock Exchange. This follows intent by the Nigerian giant to increase its footprint in Africa through buying into already existing growth. This transaction provided an opportune exit strategy for Namibian Capricorn Holdings to exit the Zambian market after a struggle in performance of its local investment which Access Bank will now own.
Read: M&A alert! Amalgamation of Access and Cavmont Banks expected in 4Q20, subject to Regs
According to a media release by the Zambian units signed off by respective communications heads Shelly Akyeh (Access) and Chilunga Chill Puta – Dunham (Cavmont), public were informed that the transaction involving acquisition of Cavmont Bank by Access Group had completed following conclusion of key conditions precedent including regulatory approvals. The subsequent merger is expected by the end of the month.
Read: Access Bank in advanced talks over M&A with Cavmont Capital Holding Zambia
This transaction is the second successful M&A transaction in space of 4 years in Zambia.
Access Bank Zambia is subsidiary of Access Bank Nigeria Plc which has over 600 branches and service outlets spanning 3 continents and 12 countries with 31million clients. Given the hurdles the globe faces (Africa inclusive) induced by disease pandemic and other economic woes occasioned by deteriorating fiscal posture leading to sovereign downgrades, markets are prone to see more mergers that support capitalization to withstand and cushion the rising risks banks face.
The Kwacha Arbitrageur.