Access Bank, Nigeria’s biggest bank by assets, has acquired South African bank, Bidvest Bank Holdings Ltd for 2.8 billion rand ($159 million) as it pursues a continent-wide expansion plan. Depending on regulatory approvals, the deal is expected to be completed in the second half of 2025.
“This acquisition supports our ambition to expand across Africa and solidify our presence in key markets, with South Africa being a top priority, said Roosevelt Ogbonna, Managing Director of the Bank in an NGX filing released Thursday.
“It underscores our commitment to establishing a more resilient, diversified, and sustainable business model that leverages technology to meet evolving customer needs.”
The sale of Bidvest Bank to Access banking group will be a huge relief to the 24-year-old South African bank seeking a buyer since June 2024. Following the completion of this transaction, Bidvest Group would pivot from financial services to other services including hygiene, facilities management, and distribution of plumbing products.
For Access Bank, this is a win for its 2027 expansion target. It will combine assets from Bidvest Bank estimated at $665 million to consolidate its Access Bank South African operations currently servicing customers in Gauteng, the Western Cape, and KwaZulu-Natal.
The combined entity will be sure to mint profits for Access Bank operations in South Africa which recorded a loss of ₦17.39 billion ($11,220,460) by the end of September 2024. Bidvest Bank Holdings reported pre-tax profits of $20 million by June 2024. This merger could really boost Access Bank’s fortunes in need of saving.
“As a well-respected, experienced, and prominent financial services entity, l am pleased that Access Bank meets our objectives and provides reassurance for the continued sustainability and prosperity of the bank. It will enable the bank to advance, scale, and sustainably grow in today’s fast-changing, technology-driven, and highly competitive sector,” Mpumi Madisa, CEO of Bidvest Group said.
Access Banking group boasts over 60 million customers across three continents and has been on an acquisition drive as far back as 2018. This year, the bank has oiled its mergers and acquisitions machinery across the whole continent, entering newer countries like Namibia, Tanzania, Angola and Sierra Leone. Two days ago, Access Holdings announced that the group had secured regulatory approval to operate as a bank in Malta.
