from MARIA MACHARIA in Nairobi, Kenya
NAIROBI, (CAJ News) – KENYA Commercial Bank (KCB) Group has failed in its bid to acquire African Banking Corporation Tanzania.
This is after KCB failed to receive certain regulatory approvals.
“The completion of the transaction was subject to certain conditions that are customary for transactions of this nature including receipt of all regulatory approvals,” Managing Director, and Group Chief Executive Officer, Joshua Oigara, said.
“Without further agreement by the parties to extend the long stop date, the Agreement has been terminated and, accordingly, the parties will not proceed to complete the Transaction as previously envisaged.”
In November 2020, KCB had announced that it had entered into a share purchase agreement with, among others, ABC Holdings for the proposed acquisition.
The transaction was envisioned to bolster the banking group’s regional play and market share in Tanzania as part of the wider strategy to grow the contribution of its international businesses to the group profitability.
“Despite the above, KCB will continue exploring and pursuing attractive regional expansion opportunities in order to enhance our regional participation, accelerate our growth and maintain sustainable long-term African success in line with our expansion and growth strategy,” Oigara assured.
– CAJ News