The Common Market for Eastern and Southern Africa (COMESA) Competition Commission has approved a merger between Access Bank and the National Bank of Kenya (NBK).
This gives Access Bank a platform for expansion in the East African region.
The proposed transaction involves the West African-based financial institution acquiring 100 percent of NBK’s issued share capital from its parent company, KCB Group.
Access Bank will also control NBK’s subsidiaries, including NBK Bancassurance Intermediary Limited and KCB Asset Management Limited.
According to COMESA Competition Commission Chairperson Mahmoud Momtaz, the CID determined that the merger is not likely to substantially prevent or lessen competition in the Common Market or a substantial part of it, nor will it be contrary to the public interest.
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“The CID further determined that the transaction is unlikely to negatively affect trade between Member States. The CID, therefore, approved the transaction.”
Similar assessments ensured the merger would not negatively affect competition or public interest within the Common Market.
The Commission concluded that the banking markets in Kenya, the DRC, Zambia, and Rwanda are highly fragmented, with numerous players holding varying market shares.
This, coupled with the presence of other competitors, would prevent the merger from reducing competition or enabling coordinated action that could harm the market.
The review also involved input from third-party organizations, such as the Commission Nationale de Concurrence in the DRC, which confirmed that the transaction raised no public interest or competition concerns.
