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He also explained that the deal still had to be approved by the National Pension Commission and the Federal Competition and Consumer Protection Commission. Upon sealing the deal, both parties are expected to notify the Nigerian Stock Exchange (NSE) about their agreement. These may now be the next steps on the paths to completing the acquisition. Between 2017 and 2018, FCMB had extended its stake in Legacy Pensions, another pension company, from 28% to 91.6%, ensuring that it gained full control of the firm. Accordingly, it has since been renamed FCMB Pensions. The AIICO Pension could now be joining the same arm of the FCMB Group. This should produce a much larger business than either of the parties currently involved. FCMB Pensions has about ₦325 billion worth of assets under management. AIICO Pension manages assets valued at ₦126 billion.
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The entity will also be bigger in terms of its customer base. FCMB Pension could be serving close to 600,000 customers by the end of the acquisition process. These customers will become part of the wider FCMB network. Their contributions will help swell its assets under management to over ₦560 billion. FCMB began as a merchant bank in 1979 and became a full-fledged commercial bank in 2001. It has since diversified into other segments of the finance industry. It is consolidating its presence in those spheres, in its bid to tap into the growing demand for variegated financial services. The group’s acquisition of a controlling stake in AIICO is part of this strategy. Featured Image Source: Nairametrics
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