The Board of Access Bank Plc has announced that its Zambian subsidiary, Access Bank Zambia Limited has completed the acquisition of Cavmont Bank Limited.
This follows fulfillment of the key conditions precedent including regulatory approvals.
The merger of Cavmont into Access Bank Zambia is expected to take place before the end of January 2021, following which Access Bank Zambia is expected to emerge as a well-capitalized banking franchise, according to Access Bank.
“Growing our presence in Zambia remains a strategic priority for Access Bank and with the conclusion of the proposed merger with Cavmont, the Bank looks forward to realizing the synergies from the transaction and achieving further growth of the combined platform to the benefit of all stakeholders,” Access Bank said.
It remains to be seen if the acquisition will be accretive to earnings, but Investors who bought into the pretty picture painted by Access Bank following its acquisition of tier-2 lender Diamond just last year may be forgiven for already having some sort of buyer’s remorse.
Access has struggled to execute its big cost saving plans following the merger with Diamond Bank in the first quarter of 2019, a deal that catapulted it to becoming the largest bank by total assets in Africa’s largest economy.
Access Bank had touted synergy gains as one of the merits of that merger but recently released 9 months 2020 results showing net impairment charges tripling to N34.2 billion compared to a year ago, amid other operating expenses that surged by 34 percent to N163.8 billion.