Access Bank has acquired Bidvest Bank in South Africa with R2.8 billion ($159 million) days after expanding to Malta. This follows the regulatory approval by the Malta Financial Services Authority and the European Central Bank on December 10 for Access Bank to open a bank in Malta.
“We are pleased to announce that Access Bank South Africa has signed a binding agreement to acquire a 100 per cent equity stake in South Africa-based Bidvest Bank, marking a significant milestone in our commitment to strengthening our footprint in South Africa and across the SADC region,” the bank announced on its LinkedIn page on Friday.
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It continued, “This acquisition, subject to regulatory approvals, will merge Bidvest Bank with our existing South African subsidiary, creating an enlarged platform to drive regional growth, enhance intra- and inter-Africa trade, and unlock new opportunities for businesses across the continent.”
The bank assures that it remains committed to building a stronger, more connected Africa.
Access Bank’s plan to dominate the continent by 2027 includes the recent acquisitions. The bank declared in January 2023 that it would enter 26 more nations over the following five years.
With operations in roughly 23 nations, the bank has acquired banks in Kenya, Angola, Namibia, and Sierra Leone. Most recently, it acquired a bank in Mauritius.
Access Bank, the biggest bank in Nigeria in terms of assets, is likewise undertaking these purchases to diversify its risk in Nigeria, its main market, where it anticipates a decline in revenue. By 2027, the bank anticipates that its profit before taxes will have decreased from 63 percent to 33 percent and that revenue from the Nigerian market will have fallen to 52 percent.
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Expansion of Access Bank to Malta
Access Holdings declared on December 10, that the company has obtained regulatory clearance to function as a bank in Malta.
Access Malta is fully owned by The Access Bank UK Limited (Access UK), a subsidiary of the banking group. Access Bank might have used its UK licence to conduct business in Europe before January 2020, but after Brexit, the banking firm had to submit a second application for a European licence.
“Europe has emerged as Africa’s leading trading partner…” according to Jamie Simmonds, Founding CEO and MD of Access UK. “…The Access Bank Malta Limited is ideally positioned to deepen trade and meet the financing and banking needs of our clients in these expanding markets.”