Merger: Access, Diamond Bank get final approval from CBN, SEC

A view of the Diamond Bank is seen along the Lekki-Epe Expressway in Lekki, Lagos, Nigeria September 12, 2017.

Access and Diamond Bank Plc announced that they have received the final approval of both the Central Bank of Nigeria (CBN), and the Securities and Exchange Commission (SEC), to the proposed scheme of merger between both financial institutions.

The banks had recently obtained approval in principle from the regulatory bodies as they await the final approval to be granted after shareholders of both banks have given their consent to the merger.

In separate notifications sent to the Nigerian Stock Exchange (NSE), both institutions said that the scheme is subject to judicial sanction by the Federal High Court and that the banks will provide further update to the market upon receipt of court sanction of the scheme.

The corporate marriage between the banks is expected to birth 27 million customers which is basically the largest customer base of any bank on the continent, about 33,000 Point of Sale (PoS) terminals as well as 13 million mobile customers.

Speaking recently at the EGM with shareholders, Group Managing Director, Access Bank Plc, Herbert Wigwe, said that following the completion of the merger, there will be more opportunities in key units like trade finance from international partners which in turn will bolster the bank’s brand as well as opening doors of opportunity in both local and international markets.

According to him, Access Bank is working to ensure that shareholder value is maximised and with existing capital and the retentions it has with the tier-2 supporting, the bank has enough capital to consummate the transaction.

For his part, Chief Executive Officer, Diamond Bank Plc, Uzoma Dozie, said, “I am happy that the shareholders of Diamond bank have supported this merger. The merger will bring together the complementary retail and corporate banking capabilities of two of Nigeria’s leading banks; creating Africa’s largest retail bank by customer base and Gateway to the World.

In addition, the combined entity is poised to deliver more opportunities to customers and shareholders, leveraging on shared; yet distinct competencies”.