Access Bank Plc has signed an agreement with Atlas Mara Limited on a merger between African Banking Corporation Zambia Limited and its subsidiary, Access Bank Zambia Limited.
The Group Managing Director/Chief Executive Officer of the bank, Dr. Herbert Wigwe, revealed this on Monday.
Wigwe made the revelation in a notice posted on the website of the Nigerian Exchange Limited.
According to Wigwe, upon completion of the transaction, the bank is expected to retain or increase its current shareholding in Access Bank Zambia.
He said after the merger, the bank would have over 70 branches and agencies, approximately $1 billion in total assets and over 300,000 customers in Zambia.
He said the transaction would require significant additional capital investment from the bank given the capital and other synergies created from the merger between Access Bank Zambia with Cavmont Bank in 2020.
He explained that the proposed transaction was expected to be concluded in 2022, subject to regulatory approvals in Nigeria and Zambia.
Wigwe said: “This transaction represents another milestone that brings us closer to the achievement of our broader strategic objectives.
“The merger of the Atlas Mara Zambia with Access Bank Zambia is expected to augment our presence in Zambia and the broader COMESA region, Africa’s largest free trade area.”
He added that the management was particularly excited by the prospects of increased earnings contribution to the bank from the enlarged Access Bank Zambia.
Meanwhile, Lishala Situmbeko has been appointed Managing Director of Access Bank Zambia.
Situmbeko brings over 25 years of cognate experience and deep local relationship into the bank’s Zambia operations.
“Today’s announcement is a testament to the strong confidence of the Zambia market in the Banks country and regional strategy as well as our strong confidence in the long-term prospects for the Zambia economy,” he added.