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KCB Group is set to acquire National Bank of Kenya (NBK) after the Central Bank of Kenya gave a nod to the buyout.
The regulator okayed the buyout of the cash-strapped bank despite being directed not to by legislators who earlier proposed an alternative recovery plan.
CBK made known on Monday evening that it has given the bank a go-ahead paving way for the finalisation of the deal.
“The acquisition will strengthen both institutions leveraging on their respective well-established domestic and regional corporate, public sector and retail franchises,” Central Bank said.
With the deal, KCB is set to become the largest lender in the region in terms of numbers and assets.
Following the regulatory approval, KCB has appointed the Group Director of Regional Businesses Paul Russo as NBK’s Managing Director for a two year period and he is expected to oversee the full integration of NBK with KCB.
“Mr. Russo (@Saagite) who is the KCB Group Director of Regional Businesses will lead the transition team that will report to the KCB Group Chief Executive Officer and Managing Director @JoshuaOigara,” the bank tweeted.
He is expected to lead the transition team that will report to the group’s CEO and Managing Director Joshua Oigara.
After the acquisition, it is expected that NBK will operate as a subsidiary of KCB Group for up to two years.
“We are confident that we shall conclude this process shortly following the receipt of the necessary approvals. We have received a good indication from NBK shareholders and we shall announce the official results within the legally stipulated timelines so as to get into the next steps of the transaction,” said Joshua Oigara.
Featured Image Courtesy: Twitter
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