The two banks announced the planned merger in January and agreed that NIC Group shareholders would own 47 per cent of the merged entity and the Commercial Bank of Africa’s (CBA) shareholders will own the remaining 53 per cent.
Tuesday 14, May 2019 BY KUDAKWASHE MUZORIWA
The Competition Authority of Kenya has approved the proposed merger between Kenya’s CBA and NIC Group, on the condition that no employees would be made redundant in the merged unit within 12 months of the deal’s completion.
In March, CBA said that its shareholders had accepted a share swap with NIC Group.
NIC Bank and CBA also require additional approval from the regulators in other countries where they operate, therefore the deal is expected to be concluded in the third quarter of 2019.
In a statement, NIC Group said that as part of the merger, the name of the merged entity will be changed and a new brand will be adopted and rolled out in due course.
The combined bank will be amongst the largest financial institutions in the East Africa region, with over 41 million customers, reported Reuters.