Nedbank Group, one of South Africa’s largest and most diversified financial institutions, serving more than 8 million clients, has unveiled plans to acquire a controlling stake in Kenya’s National Commercial Bank of Africa (NCBA) Group. The proposed transaction, structured as a combination of cash and newly issued shares, carries a total value of approximately $855.5 million. If completed, the deal would represent a major milestone in Nedbank’s long-term strategy to reinforce and expand its presence in the rapidly growing East African banking corridor.
NCBA has confirmed that the offer values the bank at roughly 1.4 times its book value, a valuation multiple that reflects both its strong balance sheet and regional market position. Under the proposed terms, Nedbank would acquire a 66% ownership stake, while the remaining shares would continue trading freely on the Nairobi Securities Exchange (NSE). This dual structure is designed to preserve NCBA’s visibility within Kenya’s capital markets and maintain active participation from minority shareholders.
The proposed acquisition comes amid increasing interest from South Africa’s major banks in East Africa’s maturing financial ecosystem. The region benefits from fast-rising populations, expanding trade corridors linked to the African Continental Free Trade Area (AfCFTA), and surging demand for digital banking services, factors that have created fertile ground for scalable growth. For Nedbank, acquiring NCBA would create immediate access to a well-established regional franchise with deep local relationships and operational reach across several East African economies.
In structuring the deal, Nedbank has balanced strategic expansion with financial discipline. The offer consists of 20% cash and 80% in new Nedbank ordinary shares, which are publicly traded on the Johannesburg Stock Exchange (JSE). This share-heavy payment mechanism lowers the bank’s immediate cash requirement while reinforcing long-term alignment between Nedbank and NCBA shareholders. The transaction valuation is tied to Nedbank’s public share price on the announcement date, bringing the total consideration to 13.9 billion rand (equivalent to $855.5 million).
If the acquisition proceeds to completion, NCBA will be incorporated as a subsidiary of Nedbank. However, the Kenyan bank would retain its established brand, governance structure, operational frameworks, and leadership team. This continuity is intended to safeguard NCBA’s long-standing market strengths while enabling it to leverage Nedbank’s larger capital base, technology infrastructure, and cross-border banking capabilities.
NCBA is itself a major player in the region. Formed in 2019 through the merger of NIC Group and Commercial Bank of Africa (CBA), the institution has evolved into one of East Africa’s leading financial services groups. It operates 122 branches across Kenya, Uganda, Tanzania, and Rwanda, with additional digital banking services available in Ghana and Côte d’Ivoire. Altogether, the bank serves more than 60 million customers, driven largely by its robust digital and mobile lending platforms.
Nedbank’s Chief Executive Officer, Jason Quinn, characterized the proposed transaction as a strategic alignment of strengths, marrying NCBA’s deep regional presence and customer reach with Nedbank’s financial capacity and expertise in cross-border operations. NCBA Group Managing Director, John Gachora, echoed this sentiment, presenting the acquisition as a long-term partnership rather than a takeover. He emphasized that Nedbank is viewed internally as a strategic investor capable of supporting NCBA’s ongoing expansion plans, including potential moves into high-growth markets such as Ethiopia and the Democratic Republic of Congo (DRC).
