(Ecofin Agency) - Kenyan Commercial Bank of Africa (CBA) announces that its shareholders have approved the merger with National Industrial Credit Bank (NIC Bank).

“As a result of the share exchange transaction, it is proposed that NIC Group will acquire sole control of CBA and its subsidiaries,” CBA indicated in a release relayed by Kenyan media.

At the end of the merger process, current NIC Bank’s shareholders will own 47% of the new entity against 53% for CBA’s shareholders. The new entity will have a total of Kes444 billion ($4.41 billion) in assets making it the third largest bank in the country after Kenya Commercial Bank and Equity Bank.

NIC Bank and Commercial Bank of Africa announced the merger project in a joint release published on December 6, 2018.  It should be finalized in Q3, 2019 and would be the first in Kenya since the interest rate cap on commercial loans decided by authorities in 2016.