The Central Bank of Kenya has announced the merger of Commercial Bank of Africa (CBA) and NIC which will be effected September 30.
As from October 1, all subsidiaries will operate under Non-Operating Holding Company, NCBA Group PLC while the banking business of the merged entity in Kenya will operate as NCBA Bank Kenya PLC.
Following the merger, all stakeholders including customers, employees, creditors of the two institutions have been directed to deal with the merged entity.
“The merger will strengthen both institutions leveraging on their combined market share of 9.9 percent and customer base of over 40 million in four East African countries,” the regulator said in a statement sent to newsrooms.
As a merged entity, the lender will be ranked third after Kenya Commercial Bank with assets of Sh 684.1 Bn as of the end of 2017.
The two banks first made known the deal in January where it was disclosed NIC Group shareholders will take up 47 percent of the merged entity while CBA shareholders would have a controlling stake of 53 percent.
CBA in March announced that its shareholders had accepted the deal and later, NIC Group’s shareholders made known they have agreed to the deal.
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