Access Bank has reached a binding agreement to acquire a 100% equity stake in South Africa’s Bidvest Bank for R2.8bn ($158m).
The proceeds from the disposal will be used to repay Bidvest’s existing debt.
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Bidvest Bank, established in 2000, offers corporate, business banking solutions, as well as retail banking products.
With total assets of $665m and a pre-tax profit of $20m as of June 2024, the bank is said to be a strategic fit for Access Bank’s growth ambitions.
Bidvest Bank will be merged with Access Bank’s South African operations on deal completion.
The merger with Access Bank’s South African subsidiary is anticipated to form a substantial platform to spearhead the bank’s growth strategy in the Southern African Development Community (SADC) region.
The Bidvest Group CEO Mpumi Madisa said: “As a well-respected, experienced, and prominent financial services entity, I am pleased that Access Bank meets our objectives and provides reassurance for the continued sustainability and prosperity of the bank.
“It will enable the bank to advance, scale, and sustainably grow in today’s fast-changing, technology-driven, and highly competitive sector.”
Access Bank plans to implement Broad-Based Black Economic Empowerment ownership, including an Employee Stock Ownership Plan.
Combining Bidvest Bank’s local operations with Access Bank’s Pan-African presence will enhance the capacity for intra and inter-African trade and foster regional integration, according to the company.
Access Bank managing director and CEO Roosevelt Ogbonna said: “This acquisition supports our ambition to expand across Africa and solidify our presence in key markets, with South Africa being a top priority.
“It underscores our commitment to establishing a more resilient, diversified, and sustainable business model that leverages technology to meet evolving customer needs.”
The deal is slated for completion in the second half of 2025, pending regulatory consent.
Access Bank, with its diverse business segments, serves over 60 million customers across more than 700 branches worldwide.
Besides, Bidvest also finalised an agreement to sell its entire stake in FinGlobal to Momentum Group.
In 2021, Access Bank announced the acquisition of a 78.15% stake in BancABC Botswana from ABC Holdings, a subsidiary of Atlas Mara.
