Shareholders approve Access and Diamond Bank merger at extraordinary general meeting

ACCESS Bank's acquisition of troubled Diamond Bank mover a step closer yesterday after the shareholders of both institutions approved the merger at an extraordinary general meeting (EGM) of both banks held in Lagos.

Early last 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. At the time, Diamond Bank said it will now focus exclusively on Nigeria as it seeks to capitalise on the vast growth opportunities presented.

In December 2018, 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. Following this, after intense negotiations between the two banks, Access and Diamond agreed a takeover package, which they then forwarded to the Central Bank of Nigeria and has now been approved by their shareholders.

Herbert Wigwe, Access Bank's chief executive told the shareholders at the EGM that the merger with Diamond Bank enables it to acquire 17m retail customers and the most viable mobile payment platform. He said that the expected revenue and cost synergies were material and promises significant long term value.

Mr Wigwe added that after the merger, Access Bank would attract more opportunities such as trade finance from international partners. He said the merger was expected to produce the largest banking group in Africa based on its number of customers with more than 29m clients on its books.

“With the final merger of both banks and the status of the resulting entity as the largest bank in Africa’s largest economy, this greatly bolsters the bank’s brand, opening doors of opportunity both in local and international markets. The resulting entity which will maintain the brand name Access Bank but with Diamond Bank colours, will have more than 29m customers, 13m of which are mobile customers.

Our bank would be a continental force with presence in 12 countries, 3,100 automatic teller machines and nearly 32,000 points of sale. As a continental financial force, it is set to attract more opportunities such as trade finance from international partners seeking multinational lenders with local intelligence,” Mr Wigwe said.

Also, Mr Wigwe noted that the enlarged Access Bank’s breath scale and product range will further accelerate the financial inclusion agenda that both banks had pursued separately. He also assured shareholders of the enlarged bank that dividends would be more robust and consistent after the merger.

Adebayo Adeleke of the Independent Shareholders Association commended the management of Access Bank for not short-changing shareholders in the scheme of the merger. He said that the shareholders were in support of the plan that would give birth to one of the largest bank in Africa.