Nairobi – South Africa’s Nedbank Group has cleared the outstanding regulatory conditions for its acquisition of a 66% controlling stake in Kenya’s NCBA Group, paving the way for the completion of a transaction valued at approximately R13.9 billion ($842 million).
According to Business Insider Africa, Nedbank’s offer became unconditional on October 15, following the receipt of the outstanding approvals. The bank expects the transaction to close in early November, after the necessary share transfers and settlement procedures.
The acquisition will make NCBA a subsidiary of Nedbank, while the Kenyan lender will retain its brand, local leadership and listing on the Nairobi Securities Exchange (NSE). Public shareholders will continue to hold the remaining 34% stake.
In a regulatory announcement published on October 19, Nedbank said it would acquire approximately 1.087 billion NCBA shares, representing 66% of the bank’s issued ordinary shares. The transaction is structured as 80% in newly issued Nedbank shares and 20% in cash.
Significant step
Business Daily Africa reported that NCBA shares are scheduled to be suspended from trading from October 21 to November 2 to facilitate reconciliation of the share register. The transfer of shares and settlement of payments are expected to begin on November 3, with final transaction figures due around November 5.
The deal marks a significant step in Nedbank’s strategy to expand its footprint beyond Southern Africa and strengthen its presence in East Africa. NCBA operates in Kenya, Uganda, Tanzania and Rwanda, while also offering digital banking services in Ghana and Ivory Coast. The group serves more than 60 million customers through a network of 122 branches.
Nedbank chief executive Jason Quinn said the transaction would strengthen the bank’s continental growth strategy.
“This landmark transaction establishes a significant presence for Nedbank in East Africa and marks a decisive step forward in our African growth strategy,” Quinn said in a statement published by NCBA Group.
He said combining the two banking platforms would create opportunities for clients and shareholders while supporting trade, investment and economic growth across Africa.
Endorsement of the Kenyan bank’s business
NCBA chief executive John Gachora described the acquisition as an endorsement of the Kenyan bank’s business and regional markets, saying the partnership would allow it to pursue new opportunities and develop more sophisticated financial products.
“This next phase in the chapter of NCBA will be one to watch,” Gachora said.
The acquisition builds on Nedbank’s January announcement that it intended to buy the controlling stake for approximately R13.9 billion. Reuters reported at the time that the proposed cash-and-share deal was designed to combine NCBA’s regional network and digital banking capabilities with Nedbank’s corporate and investment banking expertise.
The transaction is expected to strengthen cross-border financing and investment opportunities, particularly in a region where infrastructure development, trade and digital financial services are creating opportunities for lenders.
Nedbank expects to incorporate NCBA’s financial results into its group results in the fourth quarter of 2026.
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Compiled by Betha Madhomu
