COMESA Approves Acquisition Of National Bank Of Kenya By Nigerian Bank

• The COMESA Competition Commission has approved the acquisition of the National Bank of Kenya by Nigeria's Access Bank from KCB Group
• COMESA began an investigation into the deal in July 2024 and concluded that the merger would not harm competition or public interest within the Common Market
• The commission noted that the approval is not binding in Kenya, and the Competition Authority of Kenya will issue its own decision

Elijah Ntongai, a journalist at TUKO.co.ke, has more than three years of financial, business, and technology research expertise, providing insights into Kenyan and global trends.

The Common Market for Eastern and Southern Africa (COMESA) Competition Commission has approved Nigeria's Access Bank's acquisition of the National Bank of Kenya.

The decision follows an announcement in July 2024 that the commission would investigate the proposed acquisition.

What did COMESA decide on National Bank's acquisition?

In a decision document released on August 22, the commission determined that the acquisition of the National Bank will have no negative impact against public interest and hence approved the transaction.

"The CID determined that the merger is not likely to substantially prevent or lessen competition in the Common Market or a substantial part of it, nor will it be contrary to public interest. The CID further determined that the transaction is unlikely to negatively affect trade between Member States," the commission said in its determination.

However, the commission noted that the decision is not binding to the Kenyan market as the Competition Authority of Kenya will also issue its decision in accordance with the regulations in Kenya.

"The above approval does not apply to the Kenyan market. In accordance with the referral granted by the Commission, the Competition Authority of Kenya shall issue its decision in relation to aspects of the merger relating to the Kenyan market," the commission said.

KCB Group resolves to sell National Bank of Kenya

Earlier, TUKO.co.ke reported that the KCB Group had finalised a deal for the sale of its subsidiary to Nigeria's Access Group at a book value 1.25 times that of Nigeria's Access Group.

The transaction was expected to take about six to nine months to close and aims to bolster Access Group's presence in Kenya while leveraging NBK's assets to expand operations.

KCB's acquisition of NBK in 2019 aimed to revitalise the state-controlled medium-sized lender, but challenges in NBK's performance led to a reevaluation, ultimately resulting in the decision to divest.

Proofreading by Mercy Nyambura Guthua, journalist and copy editor at TUKO.co.ke