KCB Withdraws Plans To Take Over BancABC In Tanzania
East Africa’s leading financial institution, the KCB group went shopping for a new bank, in its bid to expand even further regionally, but somehow the deal to buy Tanzania’s BancABC, went sour.
The KCB Group Plc has thus shelved plans to acquire the African Banking Corporation Tanzania Limited also knwon as BancABC, which is one of the commercial banks based in Tanzania.
Reasons given by KCB management is the failure to receive certain regulatory approvals within the prescribed timeframe as specified in the Agreement.
On November 26, 2020, KCB had announced that it had entered into a share purchase agreement with, among others, ABC Holdings Limited for the proposed acquisition of BanABC.
“The completion of the transaction was subject to certain conditions that are customary for transactions of this nature including receipt of all regulatory approvals. Without further agreement by the parties to extend the long stop date, the Agreement has been terminated and, accordingly, the parties will not proceed to complete the Transaction as previously envisaged.”Joshua Oigara – KCB Group CEO and Managing Director
Proposed transaction was envisioned to bolster the Group’s regional play and market share in Tanzania as part of the wider strategy to grow the contribution of its international businesses to the Group profitability.
But despite all that, KCB management maintains that it will continue exploring and pursuing attractive regional expansion opportunities in order to enhance financial institution’s regional participation, accelerate its growth and maintain sustainable long-term African success in line with the group’s expansion and growth strategy.
Operating under the BancABC brand, ABC Holdings Limited is the parent company of a number of sub-Saharan Africa banks commanding a diverse range of financial services including personal, business and corporate banking as well as asset management, stockbroking and treasury services.