Finance

Kenya: Competition authority approves Commercial Bank of Africa and NIC Bank’s merger

Kenya: Competition authority approves Commercial Bank of Africa and NIC Bank’s merger
Monday, 13 May 2019 14:27

The merger of Commercial Bank of Africa with National Industrial Credit Bank, well-known as NIC Bank, has been approved. This was announced by the competition authority of Kenya in a release published today May 13, 2019.

The authority however required that no employee be fired from the merged entity in the twelve months following the transaction. 

The merger will be done as an equity exchange. At the end of the merger operation, NIC Bank’s current shareholders will own 47% of the newly created entity and 53% for Commercial Bank of Africa’s shareholders.

The new entity will have Ksh 444 billion in assets ($4.41 billion), being the third largest bank in the country after Kenya Commercial Bank and Equity Bank.

The merger between NIC Bank and Commercial Bank of Africa that should be finalised in Q3, 2019, will be the first major transaction in the Kenyan banking industry after the interest rate cap on commercial loans decided by authorities in 2016.  

On the same topic
IFC plans a $40 million loan to Nile Sugar, owned by Naguib Sawiris’s group. Funds will support 5,760 hectares of sugar beet farming in Upper...
South Africa launched a $500 million credit guarantee vehicle for infrastructure. The mechanism aims to mobilize private capital without...
Kenya’s foreign exchange reserves increased to $14.59 billion on March 5, up from $12.53 billion a week earlier. The reserves now...
FCMB Group has raised capital to meet the Central Bank of Nigeria’s new requirements. The recapitalization combined a public share offer and a partial...
Most Read
01

Ethio Telecom has signed a new agreement with Ericsson to expand and modernize its telecom netwo...

Ethiopia’s State-Owned Telco Teams Up With Ericsson to Expand and Upgrade Its Network
02

The BCEAO cut its main policy rate by 25 basis points to 3.00%, effective March 16. Inflation...

BCEAO Cuts Key Rate to 3.00% as WAEMU Faces Deflation
03

Central Bank of Nigeria said 20 commercial banks have met new minimum capital requirements, with...

Nigeria Advances Banking Reform With Strong Recapitalization Progress
04

EIB commits over €1 billion for renewable energy in sub-Saharan Africa Funding supports Miss...

EIB Commits €1 Billion to Renewable Energy Under Africa’s “Mission 300” Initiative
05

Senegal launches 200 billion CFA bond in UEMOA Proceeds to fund 2026 budget, transformation agend...

Senegal Launches $360 Million Regional Bond Sale
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.