KCB Group PLC has issued a notice to Tanzania’s Fair Competition Commission (FCC) of its intention to acquire entire shares in BancAfrican Banking Corporation Tanzania Limited.
In a public notice by the Fair Competition Commission, the body said it had received a merger notification to the effect that the Kenya Commercial Ban intends to acquire entire shares in African Bank Corporation Tanzania Limited [BancABC Tanzania].
On November 25th, 2020, the KCB Group Plc entered into a Share Purchase Agreement with Africa Banking Corporation Tanzania Limited whereby KCB intends to acquire all shares of BancABC Tanzania.
The FCC has notified all parties who are interested in the merger to notify the commission within 14 days by written commissions.
BancABC Tanzania is a private limited firm with its head offices in Botswana, has a presence in Mozambique, Zambia and Zimbabwe, and a serviced office in South Africa.
Earlier in the year, the bank also expressed its interest in acquiring a 62.06 % stake in Banque Populaire Du Rwanda. The proposed acquisitions are expected to increase the Group’s regional footprint as it explores new opportunities.
KCB Group is registered as a non-operating holding company that started operations as a licensed banking institution with effect from January 1, 2016. The holding company oversees KCB Kenya incorporated with effect from January 1, 2016, and all KCB’s regional units in Uganda, Tanzania, Rwanda, Burundi, Ethiopia and South Sudan.
KCB Group posted a net profit of Kes.19.6 billion for the financial year ended 31st December 20, attributed to higher provisions for loan losses and subdued economic activity associated with the COVID-19 pandemic hit business performance.
However, the group expressed optimism in their performance in 2021, saying that the group is looking forward to economic recovery despite the prevailing pandemic.
