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The deal, which will see Nigeria’s largest bank by assets take over equity in a leading tier-two South African bank, is reported to be worth about $159 million. Founded in 2000, Bidvest Bank provides services in retail, corporate and business banking, as well as insurance and foreign exchange. Its latest financial report values its assets at $665 million, with an audited profit-before-tax of $20 million. When the acquisition is completed, South Africa’s Bidvest Bank is expected to be folded into Access Bank’s existing South African subsidiary. The parties involved anticipate that this will strengthen Access Holding’s presence in the region of the Southern African Development Community (SADC). According to Mpumi Madisa, CEO of the Bidvest Group, the takeover by Access Bank augurs well for both institutions, as the Nigerian bank arrives with robust resources required to sustain them. He was confident that Access Bank’s extensive presence and strengths would enable Bidvest to achieve sustainable growth in what is a highly competitive sector.
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On his part, the Chief Executive Officer of Access Bank Plc, Roosevelt Ogbonna, said that the acquisition supported Access’s ambition to expand across Africa. He described the South African financial services market as “a priority” for the bank and noted that its latest move would enable it to establish a more resilient and sustainable business model. Over the past few years, Access Bank has quickly spread out over Africa through a series of acquisitions. It’s recently taken over BancABC Tanzania, allowing it to bolster its presence in East Africa. Earlier, it acquired Standard Chartered Bank’s subsidiaries in Angola and Sierra Leone. Just days ago, Access Bank announced that it was expanding into Malta, through its UK subsidiary, Access Bank UK Limited.
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Ultimately, the Nigerian giant seeks to establish itself as Africa’s foremost indigenous, with a footing that spans the continent and stretches into other parts of the world.
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