NIC Group PLC (NIC) and Commercial Bank of Africa (CBA) wish to announce that their respective boards of directors have agreed to the merger of NIC and CBA.
According to a joint press release issued on January 31, the merger will be completed on fulfillment of a certain set of conditions precedent, customary to transactions of his nature, including but not limited to the parties obtaining applicable shareholder and regulatory approvals, and the parties entering into and completing various transactional agreements to complete the merger
“The proposed merger will create a bank with the financial strengthen, expertise, and regional reach to support and the regions’ economic aspirations. In particular, the merged entity will be a strong position to play a key role in supporting Kenya’s economic ambitions, specifically facilitating implementing of the Big Four Agenda which focuses of food security, affordable housing, manufacturing and universal healthcare,” reads the release in part.
The merger is expected to be complete in the second half of 2019.
James P.M. Ndegwa, chairman of NIC commented: “The combined bank will be a very strong player in the region with the ability to drive growth and support Kenya’s ambitious economic agenda and that of its neighbouring territories. Our enhanced capacity through capital and balance sheet consolidation, as well as combined product and service capabilities, will make us the preferred partner to anyone doing in East Africa and beyond. It also presents an attractive prospect to our shareholders as the strategic benefits from the merged entity materialize and financial synergies are delivered.”
Desterio A. Oyatsi, chairman of CBA commented: “This merger presents us with the opportunity to play a critical role in the economies of the markets we operate in and the foundation to scale our business to other markets within our continent; leverage our core strengths which have delivered considerably to our financial inclusion agenda and enabled us to provide access to financial services to over 40 million customers in 5 markets. We are well positioned to use our strong focus in relationship management, customer service and digital delivery to change the face of banking in our markets. These are exciting times indeed, for our staff, our customers and shareholders.”