South Africa’s Nedbank Group Limited has announced plans to acquire a controlling stake in NCBA Group PLC, one of East Africa’s largest banking groups, in a transaction that could reshape the region’s financial services landscape.
In a public announcement issued in line with Kenya’s Capital Markets (Take-Overs and Mergers) Regulations, Nedbank said it intends to acquire up to 66% of NCBA Group’s issued share capital, subject to regulatory and shareholder approvals.
If completed, the deal would mark one of the most significant cross-border banking transactions in East Africa in recent years.
NCBA Group, which is listed on the Nairobi Securities Exchange (NSE), operates across Kenya, Uganda, Tanzania, Rwanda, and Côte d’Ivoire, serving more than 60 million customers through a combination of corporate, retail, and digital banking platforms.
The group was formed in 2019 through the merger of NIC Group and Commercial Bank of Africa.
Nedbank, South Africa’s fourth-largest lender by assets, said the proposed transaction aligns with its strategy of expanding its footprint across the African continent, particularly in high-growth markets with strong demographic and digital adoption trends.
According to the notice, Nedbank plans to acquire shares from existing NCBA shareholders rather than inject new capital directly into the bank.
The offer is expected to be made to qualifying shareholders at a price and under terms that comply with Kenyan capital markets regulations.
The transaction will trigger a mandatory offer under Kenyan takeover rules, requiring Nedbank to extend the offer to remaining shareholders once it crosses the control threshold.
However, the acquisition remains conditional on approvals from multiple regulators, including the Central Bank of Kenya (CBK), the Capital Markets Authority (CMA), and competition authorities in the jurisdictions where NCBA operates.
Nedbank has appointed a consortium of advisers, including investment banks and legal firms, to oversee the transaction.
The bank said it does not currently intend to delist NCBA from the Nairobi Securities Exchange, although future ownership structures will depend on post-transaction outcomes.
For Nedbank, the proposed acquisition offers immediate scale in East Africa, a region widely viewed by investors as one of the fastest-growing banking markets globally.
Rising financial inclusion, rapid digitization, and a young population have made East Africa a strategic priority for international lenders seeking long-term growth.
NCBA’s strong position in corporate banking, asset finance, and mobile-led retail banking is expected to complement Nedbank’s existing operations in Southern Africa.
In its announcement, Nedbank described East Africa as a “strategic growth corridor” and highlighted Kenya’s role as a regional financial hub.
For NCBA Group, the transaction could bring access to deeper capital pools, enhanced risk management expertise, and expanded regional trade finance capabilities.
The bank has, in recent years, invested heavily in digital banking and regional expansion, positioning itself as a pan-African financial services provider.
Shares of NCBA Group are likely to remain under close watch as investors assess the valuation and long-term implications of the Nedbank NCBA acquisition. Trading activity may also be influenced by regulatory timelines and the conditions attached to approvals.
Kenya’s banking sector has undergone significant consolidation over the past decade, driven by tighter regulation, rising capital requirements, and increased competition from fintech firms.
Nedbank said the offer is expected to be formally launched following regulatory clearances, after which shareholders will have a defined period to consider the proposal.
A circular detailing the full terms of the transaction will be published and made available to investors.
If approved, the deal would further deepen financial integration between Southern and East Africa, reinforcing the growing trend of cross-border banking consolidation on the continent.
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