- Says the acquisition of BancABC by Access Bank will not affect competition in Botswana
- Holds that the merger will not result in job losses
Africa’s leading bank by customer base, Access Bank will soon have clients in Botswana after acquiring BancABC Botswana from ABC Holdings Limited (ABCH), thanks to approval of the merger by the Competition and Consumer Authority (CCA).
“The Authority has unconditionally approved the proposed acquisition of 78.15 percent of the issued share capital in African Banking Corporation of Botswana Limited from ABC Holdings Limited by Access Bank Plc,” CCA says in a statement.
According to the statement, the transaction between the two is not expected to reduce the level of competition in the market under consideration in Botswana. “The Acquiring Enterprise is a new entrant into the Botswana banking industry and currently does not own or operate any banking business in Botswana,” CCA states. “Therefore, the acquisition of the Target Enterprise by the Acquiring Enterprise will not affect competition in Botswana because the market share of the Target Enterprise will remain unchanged upon implementation of the proposed transaction.”
The statement further notes that the transaction gives an opportunity to implement Access Bank’s expansion strategy throughout Botswana, something which will not only bring competition in the banking services but also employment. “Therefore, no job losses are anticipated in Botswana on account of the proposed transaction and it has been submitted that the proposed transaction is likely to result in job creation in the long term. In that regard, the Authority does not foresee any detriment to matters of public interest that will arise as a result of the transaction under consideration,” CCA says.
The acquiring enterprise, Access Bank, is a public company registered in accordance with the Laws of Nigeria and listed on the Nigerian Stock Exchange, carrying out its business as a commercial banking institution. Access Bank today is the largest bank in Nigeria and Africa’s leading bank by customer base. It is a full service commercial bank operating through a network of more than 600 branches and service outlets, spanning three continents, 12 countries and 36 million customers. The Bank employs 28,000 thousand people in its operations in Nigeria, Sub Saharan Africa and the United Kingdom, with representative offices in China, Lebanon, India and the UAE.
The target enterprise, BancABC is directly controlled by ABCH at 78.15 percent shareholding. The remaining 21.85 percent of the issued share capital is maintained by BancABC as free float on the Botswana Stock Exchange (BSE). ABCH has direct and indirect holdings in Botswana, Zimbabwe, Zambia, and Tanzania. BancABC wholly owns and controls Kaleu (Pty) Ltd (Kaleu), a company incorporated in accordance to the Laws of Botswana. Kaleu’s core business activities involve the provision of insurance services in Botswana. BancABC is a full service commercial banking institution listed on the BSE.