Business
Nigerian Giant Access Bank to Acquire South Africa’s Bidvest Bank
Access Bank Plc, Nigeria’s largest lender by assets, has made a strategic move to expand its operations in South Africa by acquiring 100% of Bidvest Bank Holdings Limited. The transaction, valued at R2.8 billion, is set to strengthen Access Bank’s footprint in the Southern African Development Community (SADC) region.
Details of the Acquisition
The deal, announced in December 2024, is expected to close in the second half of 2025, pending regulatory approvals in South Africa and Nigeria.
Key highlights:
- Bidvest Bank Holdings Limited includes assets worth R6 billion and deposits totaling R8 billion (as of December 2024).
- The bank reported a trading profit of R371 million and an operating income of R377 million in its most recent financial year.
- Proceeds from the sale will be used by Bidvest to settle its existing debt.
Access Bank plans to merge Bidvest Bank with its existing South African operations to create an enlarged platform for regional growth.
Strategic Intentions
Roosevelt Ogbonna, CEO of Access Bank Plc, emphasized the importance of this acquisition:
“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 resilient, diversified, and sustainable business model that leverages technology to meet evolving customer needs.”
Access Bank aims to:
- Enhance its business and SME banking.
- Strengthen foreign exchange services.
- Introduce new services tailored for the South African market.
Significance for South Africa’s Banking Sector
South Africa’s banking sector, valued as the largest in Africa, remains robust despite economic challenges. The industry achieved a 17% ROE in the first half of 2024, with combined Tier 1 capital exceeding $42.2 billion in 2022.
Access Bank views this acquisition as an opportunity to:
- Leverage Bidvest Bank’s local expertise.
- Increase capacity for intra- and inter-Africa trade.
- Facilitate regional integration and connectivity for businesses.
Bidvest’s Broader Divestment Strategy
In addition to the sale of Bidvest Bank, the Bidvest Group has announced the following:
- Sale of FinGlobal to Momentum Group to enhance its financial advice services.
- Binding offers for Bidvest Life, with a sale agreement expected soon.
A New Chapter for Access Bank in South Africa
Since its entry into South Africa in 2021 with the acquisition of Grobank Limited, Access Bank has rapidly expanded its operations. Grobank, previously focused on agriculture, was transformed into a retail banking operation, offering personal, business, and corporate banking services.
With this new acquisition, Access Bank is poised to become a major player in South Africa’s financial sector, creating value for stakeholders and advancing its vision of a pan-African banking presence.
The acquisition of Bidvest Bank by Access Bank is a landmark transaction that signals the growing interconnectedness of African markets. This deal not only underscores the potential of South Africa’s banking industry but also aligns with Access Bank’s mission to drive innovation, regional growth, and sustainable business practices across the continent.
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