2 banks for consolidation after deal
What you need to know:
- 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 on July 17, according to press reports
Dar es Salaam. CBA Bank and NIC Bank Tanzania are expected to undergo consolidation, after the banks’ groups in Kenya approved the merger deal in their respective annual general meetings.
Kenyan Business Daily reported last week that the merger still needs approval from local and regional regulators including the Bank of Tanzania (BoT), the Central Bank of Kenya, Capital Markets Authority and Competition Authority of Kenya. Officials of the banks’ subsidiaries in Tanzania were not ready to comment on the planned consolidation.
The Kenyan business newspaper said in Kenya, the merged banks have a book value of about Ksh66 billion (nearly Sh1.3 trillion), and will have a new name.
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, according to Business Daily.
Owners of the privately-held CBA were the first to ratify the amalgamation on Tuesday last week, with NIC’s shareholders also supported the proposed deal on Wednesday.
“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,” NIC Kenya chairman James Ndegwa said.
