Access Bank Plc, Nigerian lender's planned acquisition of South Africa’s Bidvest Bank has collapsed after failing to secure the necessary regulatory approvals, sources have confirmed.
Although Access Bank had completed the initial acquisition, the transaction was contingent on clearance from the Central Bank of Nigeria (CBN), the primary regulator of the banking group and its holding company. Without this approval, the deal could not legally proceed.
Sources told THISDAY Newspaper that CBN Governor Olayemi Cardoso’s insistence on strict regulatory compliance played a key role in the deal’s collapse. “He is a stickler for process,” one source noted, adding that commercial considerations on either side were secondary to adherence to regulatory protocols.
As a result, certain contractual conditions tied to the transaction were not fulfilled by the agreed stop date, leading to its termination. It remains unclear whether the deal could be revived should the CBN eventually grant the required approval.
The acquisition carried significance beyond the commercial realm, signalling potential strengthening of Nigeria–South Africa economic ties after a period of strained relations. Its failure, therefore, may carry diplomatic as well as business implications.
Importantly, the collapse was not due to issues on the South African side or reluctance from the parties involved. Bidvest Bank had confirmed that the sale agreement included standard conditions precedent, primarily regulatory approvals, and that both sides engaged for months to meet these requirements.
Bidvest also noted that the strategic rationale for reorganising its financial services division and divesting Bidvest Bank remains unchanged, even as the deal’s termination curtails Access Bank’s ambitions to expand its footprint in South Africa.
Leave a Reply