The application of Access Bank in African countries sees another advantage: the acquisition that can make it one of the largest banks in the continent. Access Bank has completed negotiations to acquire Standard Chartered Bank Sub-Saharan Africa for an undisclosed amount. The acquisition is part of Standard Chartered's plan to expand its business in Africa. The deal involves the sale of Standard Chartered's stake in subsidiaries in Angola, Cameroon, Gambia, and Sierra Leone to Access Bank.
In addition, Access Bank will acquire Standard Chartered customers, private banking, and business in Tanzania. The deal, which will be completed in 2024, excludes the sale of Nigeria's banking sector. Standard Chartered's decision to exit these African and Middle Eastern (AME) countries is in line with its strategy to improve profitability by focusing on the fastest-growing regional markets. This business is still subject to legal approval in all five countries.
“Access Bank will provide a full range of banking services and continuity for key stakeholders including employees and clients of Standard Chartered’s businesses across the five aforementioned countries,” Standard Chartered said in a statement. Sunil Kaushal, Standard Chartered’s regional CEO for AME, said the decision will allow the bank to focus on higher-growth regions. “This strategic decision allows us to redirect resources within the AME region to other areas with significant growth potential,” he said. Access Bank, on the other hand, sees this acquisition as an opportunity to build a robust global franchise focused on “serving as a gateway for payments, investment, and trade within Africa and between Africa and the rest of the world”. Commenting on the deal, Roosevelt Ogbonna, the Managing Director of Access Group, said: “With our recent European expansion and our deepened presence in key trading corridors across Africa, we will bridge the gap between cross-border and domestic transfers across all business segments.”
Commenting on the completion of the acquisition, the Group CEO of Access Holdings, Dr Herbert Wigwe said: “In anticipation of the completion of the transaction the Bank has made excellent progress in integration planning. We plan to leverage our expansive distribution network, best-in-class technology, risk and governance practices to serve high-growth businesses and the rising consumer sector in Angola. We will act as a positive catalyst to foster greater innovation and promote the deepening of the financial sector in Angola in line with our strategic growth objectives in the broader South Africa Development Community while delivering value to our stakeholders”
