KCB Group Seeks Approval to Buy Two Banks, in Tanzania and Rwanda
Kenya’s top lender, KCB Group, has made a formal application to the regional competition watchdog to be cleared for the Kes 4.4 billion deal. It is seeking to acquire two banks in Tanzania and Rwanda.
Last year, KCB announced that it would acquire 62.06 % stake in Banque Populaire Du Rwanda (BPR) and a 100 % stake in African Banking Corporation Tanzania Limited (BancABC).
Last week Monday, Comesa Competition Commission released a notice saying it had started collecting views from interested parties including competitors, suppliers and customers over the two banks
“The Commission will determine among other things whether or not the merger is likely to substantially prevent or lessen competition within the Common Market and whether the merger is or would be contrary to the public interest,” said the commission
KCB Regional Growth
KCB, which already has a presence in the Tanzania and Rwanda markets, signed a share purchase agreement with London-based Atlas Mara Limited and gave itself a six-month timeline to complete the deal.
The acquisition will be settled in $ 40 million with $3.2 million being incurred on Business Process Reengineering and $ 8 million on BancABC. However, the actual cash consideration payable by KCB will be determined based on the final book value of the two banks after the transactions.