South African lender Nedbank Group has announced plans to acquire a controlling stake in Kenya’s NCBA Group, in a proposed cash-and-share transaction valued at about 13.9 billion rand ($856 million), signalling a stronger push into East Africa’s banking market.
Under the offer, Nedbank intends to buy a 66% stake in NCBA, with the deal structured around a mix of cash and newly issued Nedbank shares.
If approved, NCBA would become a subsidiary of the South African banking group, while continuing to operate under its existing brand, retain its local management team, and remain listed independently on the Nairobi Securities Exchange.
Don’t Miss This: Adenike Kuti Appointed Board Member at FirstCap Limited
The transaction is based on Nedbank’s share price of 250 rand, with NCBA shareholders set to receive 20% of the consideration in cash and the remaining 80% in Nedbank ordinary shares listed on the Johannesburg Stock Exchange.
The remaining 34% of NCBA’s shares would continue trading publicly in Nairobi.
Nedbank chief executive Jason Quinn described the proposed acquisition as a key milestone in the group’s strategy to deepen its presence across southern and East Africa.
The bank said East Africa holds strategic importance due to its strong economic fundamentals and its position as a vital trade corridor linking Africa with the Middle East, India, and Asia.
Formed in 2019 through the merger of NIC Group and Commercial Bank of Africa, NCBA is one of East Africa’s leading financial services groups.
Headquartered in Nairobi, it operates across Kenya, Uganda, Tanzania, and Rwanda, with digital banking services extending to Ghana and Côte d’Ivoire.
The group serves more than 60 million customers through a network of 122 branches across the region.
