Merger: Access, Intercontinental banks sign MoU

Access Bank Plc and Intercontinental Bank Plc have signed a Memorandum of Understanding (MoU) to merge.

In a statement issued by both institutions, the MoU followed the “completion of a competitive, rigorous and transparent selection process and the approvals of the Board of Directors of both banks.”

It said the exercise would result in the emergence of one of Africa’s largest financial institutions in the country.

However, in accordance with international best practices,the merger plans would be ratified by shareholders, regulators and the judiciary.

The banks said the move would offer unique opportunities for both institutions, as the Retail banking operations of Intercontinental Bank would be fused with the wholesale and commercial banking strength of Access Bank to bring remarkable growth in the new entity.

“We are pleased to announce that Access Bank Plc and Intercontinental Bank Plc have signed a Memorandum of Understanding (MOU) for the purpose of business combination of both institutions, which will result in the emergence of one of Africa’s largest financial institutions. The synergy from combining the two banks will, therefore, create a formidable competitor with scale to rival the top banks in the industry,” the statement said.

The banks noted that the consolidation of the banking sector is essential to the future stability and growth of the economy, stressing that the merger between both banks is of systemic importance and would create further stability in the sector.

The transaction, the statement explained, is also seen as providing opportunities for Intercontinental Bank Plc to continue to provide excellent banking services to its numerous customers both within and outside the country.

“It is also expected that Intercontinental Bank’s low cost deposits portfolio plus Access Bank’s leadership position in commercial banking, robust balance sheet and good corporate governance and risk management will put both institutions on sustainable growth path,” it added.

Source : The Nation