Access Bank to Acquire Standard Chartered's Subsidiaries in Five Sub-Saharan African Countries.

On July 14, 2023, a significant agreement was signed at Standard Chartered Bank's headquarters in London, with the presence of senior representatives from Access Bank Plc and Standard Chartered Bank.?

The agreement involves the acquisition of Standard Chartered Bank's businesses in specific regions of Sub-Saharan Africa, including Angola, Cameroon, The Gambia, and Sierra Leone, as well as its Consumer, Private & Business Banking business in Tanzania. The signatories of the agreement were Sunil Kaushal, Regional CEO, Africa & Middle East, Standard Chartered, and Roosevelt Ogbonna, Group Managing Director, Access Bank Plc.

This strategic move aligns with Standard Chartered Bank's global strategy, which aims to achieve operational efficiencies, reduce complexity, and drive scale. However, it is important to note that each transaction is subject to the approval of the respective local regulators and the banking regulator in Nigeria.

Standard Chartered Bank had previously decided to strategically divest from several markets, namely Lebanon, Angola, Cameroon, Gambia, Sierra Leone, Zimbabwe, and Jordan, and to exit the CPBB business in C?te d’Ivoire and Tanzania. As of the announcement, the bank has substantially completed the divestment process from most of the markets except C?te d’Ivoire, where it is still in discussions with potential buyers for the sale of its CPBB business.

Sunil Kaushal expressed his satisfaction with the agreement, highlighting that it allows the bank to reallocate resources within the AME region to other areas with significant growth potential, better supporting their clients. He looks forward to working closely with Access Bank's team to ensure a successful conclusion to this transaction while safeguarding the interests of their valued clients and prioritizing their employees.

Access Bank, as the preferred partner, will provide a full range of banking services and continuity for employees and clients across the five aforementioned countries. The banks will work together closely over the coming months to ensure a smooth transition, with the transaction expected to be completed within the next 12 months.

Roosevelt Ogbonna of Access Bank expressed gratitude for being selected as the preferred partner in this transaction, emphasizing Standard Chartered Bank's strong presence in the African markets for over 100 years.?

This strategic move represents a significant step for Access Bank in its journey to build a strong global franchise focused on facilitating payments, investment, and trade within Africa and between Africa and the rest of the world.

With this development, Access Bank's value is expected to soar, solidifying its prominent position in the African banking scene, already being Nigeria's largest bank by assets.

Access Bank's commitment remains strong, as they? aim to reshape the global perception of Africa and African businesses. The bank plans to implement a 5-year growth plan, establishing a world-class payments gateway supported by technology and strong partnerships to efficiently serve global payments and remittances while making positive impacts on host communities.

It's worth noting that this move by European banks leaving Africa is part of a growing trend.?

These banks commonly cite retail banking in Africa as being high-risk and low-yielding as their rationale. However, the actual impact of these assertions on native African banks, such as those in Nigeria, is yet to be fully understood, especially considering that their stock prices have been steadily rising.