Access Bank expands tentacles, gets approvals for Grobank acquisition

Access Bank Plc is set to spread its reach to South Africa with recent approval from the South African and Nigerian regulatory authorities to acquire South African-based Grobank Limited.

The bank’s expectation of 30 per cent profit outside its Nigerian base, through a series of acquisitions in East and West Africa, is coming to fruition.

According to the announcement, the approvals constitute a significant milestone in achieving completion of the transaction by the second quarter of 2021. This milestone further solidifies Access Bank Plc’s outside revenue plan especially after the announcement that its Zambian subsidiary (Access Bank Zambia) has finalized the acquisition of Cavmont Bank Limited.

According to the CEO of Access Bank, Mr. Herbert Wigwe, the announcement represents significant progress in delivering on the bank’s strategic intent of becoming Africa’s Gateway to the World in pursuit of the vision to be the World’s Most Respected African Bank.”

Nigeria’s biggest banks such as Access Bank, Guaranty Trust Bank Plc, and Stanbic IBTC Holdings Plc are diversifying outside their core operations or expanding across Africa in an attempt to increase revenue after the outbreak of the Covid-19 pandemic.

The approved acquisition would enable the bank to further pursue its objectives of business diversification, enhanced operational efficiencies, talent retention, and robust governance.

Grobank in South Africa and Cavmont Bank in Zambia are further indicators of the bank’s presence in the SADC region.

In Nigeria, the bank is looking to transition to a holding financial institution this year which will enable it to open subsidiaries in insurance brokerage and payments.

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