Shareholders of Access and Diamond Bank have approved the merger of the two commercial lenders to an entity beginning from April 1, this year, the approval was sequel to a court order extraordinary general meeting held in Lagos on Tuesday.
At the EGM, the shareholders of the two financial institutions agreed that Access should to take over operations of Diamond Bank in a $235 million deal that would create Africa’s largest bank by customers.
The merging institutions would operate under the new Access Bank Plc franchise from April 1.
“Following receipt of ... regulatory approvals, the merger between Access Bank and Diamond Bank will proceed as planned. At this stage we expect to launch the new enlarged Access brand ... on April 1st,” the banks said in a statement.
In December, Access had agreed to buy mid-tier lender Diamond Bank with cash and shares, creating a bank with 29 million customers, which the two banks have said is more than any other bank in Africa.
The takeover will reduce the number of players in the banking industry in the country, where the top five banks control more than 60 percent of assets.
Access agreed to the takeover after Diamond Bank had struggled since 2016 to bolster its capital following loan losses which had forced the bank to sell its foreign subsidiaries.
U.S. private equity firm Carlyle is one of the main shareholders in Diamond Bank, which has a strong focus on banking for retail customers and small businesses.
The takeover will reduce the number of players in the banking industry in the country, where the top five banks control more than 60 percent of assets.
Access agreed to the takeover after Diamond Bank had struggled since 2016 to bolster its capital following loan losses which had forced the bank to sell its foreign subsidiaries.
U.S. private equity firm Carlyle is one of the main shareholders in Diamond Bank, which has a strong focus on banking for retail customers and small businesses.
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