Business
How Acquisition Of Standard Chartered Subsidiaries Will Impact Nigerian Shareholders Of Access Bank
By GWG Business Editor
Access Bank Plc is upping its game to become Africa’s gateway to the international financial system through the acquisition of the subsidiaries of Standard Chartered Bank in five African countries with analysts saying the deal will not negatively impact shareholders’ returns in Nigeria.
The five countries are Angola, Cameroon, Gambia, and Sierra Leone where Access Bank is to acquire the shareholding of Standard Chartered. The deal it was gathered will also see Access Bank acquire the consumer, private and business banking operations of Standard Chartered in Tanzania.
The deal according to analysts is a win for the two banks. It allows Standard Chartered to focus on the more profitable African markets underpinning the long-term commitment of the bank in Africa.
For Access Bank, it gives it the increased spread and bounce as it navigates on its long-term goal of becoming Africa’s main gateway to the international financial system.
GWG.ng had earlier reported that in this direction Access Bank had spread its tentacles across francophone Africa and recently opened a subsidiary in Paris, France as part of its strategies in connecting its francophone markets with Paris.
GWG.ng further reports that the latest deal with Standard Chartered gives Access the leverage of taking up existing well run banks with the mindset of integrating them into its increasingly expanding continental profile.
Commenting on the deal, Standard Chartered Regional CEO for Africa and the Middle East, Sunil Kaushal said:
“This strategic decision allows us to redirect resources within the AME region to other areas with significant growth potential”.
The bank also said: “Access Bank will provide a full range of banking services and continuity for key stakeholders including employees and clients of Standard Chartered’s businesses across the five aforementioned countries”
In his own comment on the development, the MD of Access Bank, Roosevelt Ogbonna said: “With our recent European expansion and our deepened presence in key trading corridors across Africa, we will bridge the gap between cross-border and domestic transfers across all business segments.”
GWG.ng reports that the deals will be subject to regulatory approval in the countries concerned and also in Nigeria.
Analysts say that the deal with Standard Chartered is not expected to impact negatively on shareholder value in Nigeria given claims of sufficient cash in the Access Bank subsidiaries where the deals are being consumated.
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