Access Bank and Diamond Bank merger: Final court approval granted
Exotix Capital has acted as international advisor to Diamond Bank through the merger process; Union Capital have acted as local advisor to Diamond Bank, and Citigroup and Chapel Hill Denham have advised Access Bank.
Access Bank confirmed today that it has obtained the final approval needed for the merger to proceed – "Court Sanction of the Merger" – and that the "Effective Date of the Merger" is 19 March. The launch of the new brand is scheduled for 1 April, according to management.
The two banks stated in a press release that the merger:
- "Will form a leading Tier 1 Nigerian bank and the largest bank in Africa by number of customers, spanning three continents, 12 countries and 29 million clients." Click here for more detail.
- "Brings together treasury, risk management and corporate banking expertise with strong retail and digital banking capabilities to create a financial institution operating across the full suite of products for all customer segments."
- Could lead to "cost synergies conservatively estimated at NGN30 billion per annum, pre-tax, to be fully realised within three years post-completion."
In December, Exotix announced it had suspended its recommendations on Access Bank and Diamond Bank because of its role as international financial adviser to the latter through the transaction.
We will assess the valuation of the merged entity over the coming weeks.
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