The Competition Authority of Kenya (CAK) has given its approval for Access Bank’s acquisition of the National Bank of Kenya (NBK) from KCB Group, with the stipulation that Access Bank retains 80% of NBK’s staff for at least one year. The transaction now awaits the approval of the Central Bank of Kenya (CBK).
CAK stated in an official release;
The transaction has been approved on condition that Access Bank Plc retains, for a period of one (1) year following completion of the transaction, at least 80% of the target’s current workforce and all Access Bank (Kenya) Plc employees, its local subsidiary.
Regulatory filings indicate that NBK employs 1,384 staff members, while Access Bank Kenya has 316 employees.
Although the financial details of the transaction have not been disclosed, KCB Group announced in March 2024 that it had agreed to sell National Bank for 1.25 times the bank’s book value. Given NBK’s book value of $79.77 million in 2023, the deal is estimated to be valued at approximately $100 million. The acquisition is expected to be finalized in November.
Access Bank currently operates 23 branches across 12 counties in Kenya. The acquisition of NBK, which offers retail, corporate, and Islamic banking services through 77 branches in 28 counties, will significantly expand Access Bank’s presence in East Africa’s largest economy.
Currently, Access Bank’s operations in Kenya are classified as tier 3, ranking 37th out of the 39 licensed commercial banks, while NBK is a tier 2 lender. CAK estimates that the merged entity will hold a combined market share of 1.9% upon completion of the acquisition.
“The combined market size is unlikely to raise competition concerns since it is low. Additionally, the merged entity will face competition from other banks in the market. Based on the foregoing, the proposed transaction is unlikely to lead to a substantial lessening or prevention of competition in the market,” CAK concluded.
