₦airaland Forum

Bidvest Bank is being sold to Nigerian-based Access Bank, which is set to expand the latter’s operations in South Africa substantially.

In December 2024, JSE-listed Bidvest announced that it would dispose of 100% of Bidvest Bank Holdings Limited to Access Bank plc.

Bidvest is expected to raise R2.8 billion from the sale, which will then be used to settle its existing debt.

Access Bank plans to implement Broad-Based Black Economic Empowerment (BBBEE) ownership, including an Employee Stock Ownership Plan.

The acquisition is expected to close in the second half of 2025, subject to regulatory approvals in South Africa and Nigeria.

The Bidvest Bank book, which mainly consists of leased assets, loans and advances, totalled R6 billion in December, and was funded by deposits of R8 billion.

In its most recent financial year, Bidvest Bank generated a trading profit of R371 million and an operating income of R377 million.

“Bidvest will continue to support Bidvest Bank to ensure that it remains financially sound and operationally stable throughout the disposal process,” it said.

Access Bank is the largest lender in Nigeria by assets and is a full-service bank with over 60 million customers globally across three continents.

The group has four business segments: retail, business, commercial and corporate.

“Through its strong presence in Nigeria, 16 subsidiaries in Africa, the United Kingdom and representative offices in China, Hong Kong, the United Arab Emirates, India and France, Access Bank employs over 8,400 people,” said Bidvest.

Following the acquisition, Bidvest Bank is set to be merged with Access Bank’s existing South African subsidiary to create an enlarged platform to anchor the regional growth strategy for the SADC region.

“This acquisition supports our ambition to expand across Africa and solidify our presence in key markets, with South Africa being a top priority,” said Roosevelt Ogbonna, MD and CEO of Access Bank Plc.

“It underscores our commitment to establishing a more resilient, diversified, and sustainable business model that leverages technology to meet evolving customer needs.”

“Bidvest Bank provides a unique opportunity to blend its strong local expertise with Access Bank’s robust trade and retail banking capabilities, creating a platform for long-term growth and value creation.”

Access Bank said that the transaction aligns with its ambition to become a major player in each market it operates.

Using Bidvest Bank’s local capabilities and its established pan-African presence, Access Bank hopes that it will have increased capacity for intra- and inter-Africa trade, connect businesses and create new opportunities for regional integration.

The Nigerian-based company noted that South Africa’s banking sector is the largest in Africa, with a combined tier 1 capital exceeding $42.2 billion in 2022.

Despite a tough operating environment, the industry still achieved headline earnings growth of 2.5% year-on-year and maintained strong profitability (ROE of 17%) in the first half of 2024.

Access Bank added that it will leverage the acquisition to strengthen its business and SME banking as well as its foreign exchange services, while also introducing new services tailored to the South African market.

Access Bank has already been operating in South Africa since 2021 after it acquired Grobank Limited.

Grobank, which was previously known as Bank of Athens, was primarily focused on agriculture before Access Bank transformed it into a retail banking operation.

The group currently offers personal, business, and corporate banking in South Africa.

Bidvest sells more

On top of the announcement to sell its banking division, Bidvest also announced that it reached an agreement to dispose of 100% of FinGlobal to the Momentum Group subject to regulatory approvals.

“This acquisition supports our stated strategic intent to invest in financial advice to drive growth,” said Johann le Roux, CEO of Momentum Retail.

“FinGlobal’s financial emigration capabilities will not only strengthen Momentum’s existing holistic financial planning, advice and fiduciary capabilities but also support other industry players’ service offerings.”

“Global mobility and emigration amongst affluent and high net worth clients will continue in future Advice plays a critical role in managing the financial realities of global mobility in a responsible way.”

All FinGlobal employees will be retained as part of the transaction.

Bidvest also announced that it was in possession of binding offers from existing life insurers for 100% of Bidvest Life.

In December, Bidvest said that one of these offers will be advanced to an agreement in the coming weeks.

“Bidvest Bank, FinGlobal and Bidvest Life will be disclosed as a Disposal Group held for sale in the consolidated Bidvest financial statements for the financial year, which commenced 1 July 2024.”

Source: https://businesstech.co.za/news/banking/805821/nigerian-giant-buying-one-of-south-africas-biggest-banks/

Welcome development.

Access to the world.

Great, we need to colonize these South Africans maybe then they will accord the necessary respect to Nigeria. Fucking ingrates

pimplucious:
Great, we need to colonize these South Africans maybe then they will accord the necessary respect to Nigeria. Fucking ingrates

Very soon. We should just be buying all the businesses the white South Africans own.

Many black South Africans will not like this.

Another reason for another phase of xenophobia

Access currently is the fastest growing bank in the world, how they manage to secure these hefty acquisitions is quite mind bugling.

The way the South Africa hate Nigerians I won't buy anything South African goodluck trying to make profit.

soon you will hear the useless South Africans singing they are buying our cats,they are buying our dogs,they are also buying our HIV free girls for the people that lives there.

Yeye dey smell.

Access bank needs to tell us the basis for all these banks they are buying. As at last count, it'd close to 14.

go on access bank, my bank.
Rescue those southy bank from bankruptcy..

Hope this will make you stop the unnecessary charges from my account.

2aces:
Access currently is the fastest growing bank in the world, how they manage to secure these hefty acquisitions is quite mind bugling.

...mind-boggling.

Big brother helping sadAfrica

It is a good and very significant market to enter .

better to hold south africa oo! Landmark done learn

Alright.
Congratulations.

Zooposki:
Very soon. We should just be buying all the businesses the white South Africans own.

Start with Multichoice Nigeria.

Great100000:
Source: https://businesstech.co.za/news/banking/805821/nigerian-giant-buying-one-of-south-africas-biggest-banks/

Lolz

Bad ass bank with terrible work-life balance!

Spend 3-5 years and move, else HBP go catch you.

Customers go soon suffer unnecessary deduction from their account balance.

Good.

How much is ShopRite?
Asking for my wife that asked me to open a supermarket for her....

Ngwamankilyou2:
soon you will hear the useless South Africans singing they are buying our cats,they are buying our dogs,they are also buying our HIV free girls for the people that lives there.

Yeye dey smell.

lol

Congrats to them

nedu666:
Access bank needs to tell us the basis for all these banks they are buying. As at last count, it'd close to 14.

I hear they did not pay for the first purchase, now they are on acquisition spree.

Humpty Dumpty

Good one. Hope the SA Govt won't play a fast one on the acquisition process. They have a way of frustrating foreign-owned businesses

More Nigerian firms should buy whole juicy banks of South Africa with their large mouth and big yansh.

we can buy the entire south africa

Yonder. That great. Nigeria & SA coming together.

Shh!

Don't loud it.

Ironfaceman:
Y

Z

Buy south Africa next 😎


Meanwhile note

it is only a Nigerian girl you will see preparing for marriage and she only has #5k or less in her account.
With a mind blowing milage!!

It is only a Nigerian girl that knows what she deserves, but has 0 account balance, no job and her parents can't even afford to give her what she thinks she deserves.

It is only a Nigerian girl that believe what she deserves should be funded by a man's pocket.

Very delusional lot.




There are bad men and women out there but the choice of a bad wife is a mistake you should avoid at all cost.

With which person money abeg? Nothing must do my 5k o