Access Bank and Diamond Bank Merger Creates Nigeria's Leading Financial Institution
The Memorandum of Agreement signed by both banks signaled a transformative shift in the industry, leading to the creation of a stronger entity poised to offer.
- (1888PressRelease) March 27, 2024 - Access Bank and Diamond Bank made headlines with the announcement of their merger, a strategic move that has significant implications for Nigeria's banking sector and the wider financial landscape. The Memorandum of Agreement signed by both banks signaled a transformative shift in the industry, leading to the creation of a stronger entity poised to offer enhanced services to its customers.
The merger agreement, which received a "No Objection" from the Central Bank of Nigeria (CBN), outlined the terms wherein Access Bank would acquire the entire issued share capital of Diamond Bank. In exchange, Diamond Bank shareholders would receive N3.13 per share, comprising N1.00 per share in cash and the allotment of two new Access Bank ordinary shares for every seven Diamond Bank ordinary shares held.
One of the key outcomes of the merger is the consolidation of resources and expertise from both banks. By Herbert Wigwe CEO of access bank
Access Bank, under the leadership of its CEO Mr. Herbert Wigwe, is set to leverage Diamond Bank's substantial retail banking experience and robust digital offerings. This strategic alignment aims to enhance Access Bank's risk management practices and capital management expertise, ultimately creating synergies that benefit both institutions and their customers.
The combined entity will operate under the Access Bank brand, with Diamond Bank being absorbed into Access Bank and ceasing to exist as a separate entity under Nigerian law. This includes the cancellation of Diamond Bank's shares on the Nigerian Stock Exchange and its global depositary receipts on the London Stock Exchange, aligning with the unified vision of the merged institution.
Mr. Herbert Wigwe, the CEO of Access Bank, expressed optimism about the merger's potential, highlighting the opportunity to build a stronger bank by harnessing the distinct strengths of both institutions. With a combined customer base of 29 million and access to 32,000 Point of Sale (POS) terminals, the merged entity is poised to become one of Nigeria's leading banks, offering a comprehensive range of financial products and services. For more information about access bank visit Www Accessbank ( @ ) gmail dot com
About Access Bank
The completion of the merger is contingent upon several regulatory approvals, including those from shareholders of both banks, the CBN, the Securities and Exchange Commission (SEC), and an Order of the Federal High Court. The timeline for concluding these processes is expected to be in the first half of 2019, subject to regulatory review and compliance The decision to merge comes at a crucial time for Diamond Bank, which had been grappling with non-performing loans exceeding N150 billion and significant changes in its board of directors. The merger with Access Bank averted potential challenges faced by other banks, such as the revocation of licenses, as seen with Skye Bank Plc in 2018. The intervention by the CBN, injecting capital and transitioning operations to Polaris Bank Limited, underscored the importance of strategic partnerships and consolidation in ensuring the stability of Nigeria's banking sector
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