Lagos, Nigeria – Access Bank, one of Nigeria’s leading financial institutions, has concluded talks for the acquisition of Standard Chartered Bank’s subsidiaries in several sub-Saharan African countries. The deal, which is subject to regulatory approval, is expected to be finalized in 2024.
Standard Chartered Bank (StanChart) has agreed to sell its shares in Angola, Cameroon, Gambia, and Sierra Leone, as well as its consumer, private, and business banking business in Tanzania to Access Bank, according to Reuters. The move is in line with Standard Chartered’s global strategy to achieve operational efficiencies, reduce complexity, and drive scale.
Access Bank is set to provide seamless banking services and continuity for employees and clients of Standard Chartered’s businesses in the aforementioned countries. The acquisition is pending regulatory approval in the target countries and Nigeria, where Access Bank is headquartered. The deal, however, does not include StanChart subsidiaries in Nigeria.
With this strategic acquisition, Access Bank is poised for substantial growth and consolidation of its position as Nigeria’s largest bank by assets, boasting assets worth ₦15 trillion. The bank’s expansion plan is well underway, as it recently completed the acquisition of Finibanco Angola S.A. after receiving regulatory approvals in both Nigeria and Angola.
Herbert Wigwe, Access Group CEO, expressed confidence in the bank’s integration planning, aiming to leverage its expansive distribution network, advanced technology, and strong risk and governance practices to serve high-growth businesses and the thriving consumer sector in Angola.
In contrast, StanChart is pursuing a strategy to streamline its operations and focus on faster-growing markets in Africa and the Middle East. The bank aims to exit seven countries, including Angola, Cameroon, Gambia, Jordan, Lebanon, Sierra Leone, and Zimbabwe. By divesting its businesses in these markets, StanChart seeks to redirect resources to areas with significant growth potential and enhance overall profitability.
Notably, in 2022, StanChart made a shift to digital banking in Nigeria by closing about half of its branches, focusing on improving operational efficiency and embracing the digital landscape. The decision was in response to a rapidly evolving banking landscape and customer preferences.
With the acquisition of Standard Chartered Bank’s subsidiaries in several African countries, Access Bank is positioning itself for enhanced regional presence and market dominance. As the deal proceeds through regulatory approvals, both banks are keen on realizing their respective strategies and achieving sustainable growth in the dynamic African banking sector.
