Access Bank to acquire Diamond Bank as consolidation within Nigerian banking sector continues

ACCESS Bank has announced plans to acquire its troubled rival Diamond Bank as part of a major expansion plan that continues the ongoing consolidating within the Nigerian banking industry.

Earlier this year, Diamond Bank announced plans to sell off its UK banking operations and concentrate on its primary business of retail banking as part of a restructuring programme involving the disposal of non-core operations. According to Diamond Bank, it will now focus exclusively on Nigeria as it seeks to capitalise on the vast growth opportunities presented.

Already, Diamond Bank has sold its West African business operations across Benin, Togo, Ivory Coast and Senegal in November 2017 in order to focus on Nigeria. Last week, Diamond Bank took this process a step further, announcing a decision to drop its international operating licence to focus on national operations following capitalisation issues.

After intense negotiations between the two banks, Access and Diamond have now agreed a takeover package, which is expected to be announced by the Central Bank of Nigeria later on in the week. This latest purchase is a continuation by the banking consolidation exercise originally initiated by former Nigerian finance minister Ngozi Okonjo-Iweala.

Uzoma Dozie, Diamond Bank's chief executive, said: “The re-licensing as a national bank supports Diamond Bank’s objective of streamlining its operations to focus resources on the significant opportunities in the Nigerian retail banking market, and the economy as a whole. The move follows Diamond Bank’s decision to sell its international operations, which included the disposal of its West African Subsidiary in 2017 and Diamond Bank UK, the sale of which is currently in its final stages.

Diamond Bank recorded its worst month on record in November with share prices plunging to 0.65k per unit. Diamond Bank commenced operations as a private limited liability company on March 21, 1991 and in May 2005, it was listed on the Nigerian Stock Exchange.