NIC Group In Merger Talks With Commercial Bank Of Africa

NIC Group PLC and Commercial Bank of Africa Limited are in merger talks to form one financial entity.

This was announced in a joint statement sent to newsrooms, in which the institutions say that the board of directors have approved the merger and is now subject to approvals from shareholders of the two entities and regulatory authorities.

“It is the view of the two Boards that the potential merger would bring together the best in class retail and corporate banks with strong potential for growth in all aspects of banking and wealth management. A combined entity would create a complementary base of over 38 million customers, a strong digital proposition and a robust corporate and asset finance offering,” said the two institutions in the statement.

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“It is important to note that an eventual merger remains subject to due diligence processes, shareholder, regulatory and other approvals. During this phase of discussions the two entities will continue to operate independently,” added the statement.

CBA is the largest privately owned Kenyan bank, whose primary focus is Corporate and Institutional banking. It was founded in Tanzania 50 years ago and branches were set up in Kenya and Uganda shortly thereafter.

NIC on the other hand is a full-service bank with 42 branches in Kenya, five branches in Tanzania, three branches in Uganda. It is listed on the Nairobi Securities Exchange with approximately 26,000 shareholders. The bank has already issued a cautionary statement in respect to trading of its shares.