South Africa’s Nedbank Group, one of Africa’s largest banks, is set to expand its footprint beyond Southern Africa with a proposed acquisition of a controlling stake in NCBA Group PLC. The bank aims to acquire 66% of NCBA’s ordinary shares through a tender offer, leaving the remaining 34% publicly listed on the Nairobi Securities Exchange. The move signals Nedbank’s ambitions to use Kenya as a strategic gateway to the wider East African market.
The proposed deal values NCBA at 1.4 times its book value, highlighting investor confidence in the bank’s robust performance. Shareholders accepting the offer will receive 20% in cash and 80% in Nedbank shares, listed on the Johannesburg Stock Exchange. Beyond the financials, the acquisition positions Nedbank to tap into East Africa’s growing economy, expanding middle class, and tech-savvy population.
Nedbank CEO Jason Quinn emphasized Kenya’s role as a regional financial hub, citing its strong institutions, vibrant technology sector, and stable macroeconomic environment. The bank sees potential across neighboring markets, including Uganda, Tanzania, and Rwanda, all of which offer steady growth and investment opportunities. For Nedbank, Kenya is more than a market—it’s a launchpad into a region with a population of nearly 190 million people and a GDP approaching USD 300 billion.
NCBA brings scale, reach, and digital innovation to the partnership, operating across Kenya, Uganda, Tanzania, Rwanda, Ivory Coast, and Ghana, with over 122 branches and more than 60 million customers. Its digital lending, asset finance, and investment banking expertise make it an ideal partner for Nedbank. NCBA MD John Gachora described the acquisition as a natural fit, highlighting opportunities to expand into markets such as the Democratic Republic of Congo and Ethiopia.
Nedbank plans to maintain NCBA’s brand, governance, and management, ensuring decisions remain locally anchored. The acquisition promises enhanced banking capabilities, larger lending capacity, and cross-border career growth for staff. With regulatory approvals pending, the deal could close within six to nine months and rank among the most significant cross-border banking transactions in recent years, signaling strong confidence in Kenya and East Africa’s economic future.
source: Businesstoday