Owners of the privately-held CBA were the first to ratify the amalgamation on Tuesday, with NIC’s shareholders also supporting the proposed deal Wednesday.
The merger still needs approval from local and regional regulators including Bank of Tanzania, the Central Bank of Kenya, Capital Markets Authority and Competition Authority of Kenya.
The banks expect that all the requisite approvals will be obtained by June, allowing shares of the merged entity to commence trading on the Nairobi Securities Exchange (NSE) on July 17.
The merged bank, with a book value of about Sh66 billion, will have a new name.
Shareholders of NIC Group #ticker:NIC and CBA Group have approved the merger of the two banks in their respective annual general meetings, bringing the tie-up of the two closer to completion.
Owners of the privately-held CBA were the first to ratify the amalgamation on Tuesday, with NIC’s shareholders also supporting the proposed deal Wednesday.
“The endorsement paves the way for completion of the merger that will deliver significant benefits to the group stakeholders,” NIC’s chairman James Ndegwa said.
The merger still needs approval from local and regional regulators including Bank of Tanzania, the Central Bank of Kenya, Capital Markets Authority and Competition Authority of Kenya.
The banks expect that all the requisite approvals will be obtained by June, allowing shares of the merged entity to commence trading on the Nairobi Securities Exchange (NSE) on July 17.
The merged bank, with a book value of about Sh66 billion, will have a new name.
“Whilst a new name is yet to be selected, both NIC and CBA are jointly working with external brand consultants to identify a name that will reflect the identity, values and aspirations of the new merged entity,” Mr Ndegwa said.
The entity will become the third-largest bank in the country with Sh453.5 billion assets based on results for the year ended December 2018.
This will see it relegate Co-op Bank #ticker:COOP, with Sh413.4 billion in assets, to fourth place.
KCB Group #ticker:KCB and Equity Group #ticker:EQTY rank first and second with assets of Sh714.3 billion and Sh573.3 billion respectively.
Areas of overlap including branch networks, technology, management and support functions are expected to be reviewed with a view to cut costs and improve efficiencies.
At the start of the integration, the company will have 2,360 employees and more than 100 branches in multiple markets including Kenya and Tanzania.
Upon completion of the transaction, the businesses will be organised into banking and non-banking operations.
The banking unit will comprise lending and deposit-taking businesses.
It will also include a company to house all the digital banking services including the micro-credit platform M-Shwari which is offered in Kenya.
The non-banking division will comprise stock brokerage, property investment, leasing, insurance agency and other ventures.
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