Home Business Access Bank/Diamond Bank merger to attract foreign opportunities, says Wigwe

Access Bank/Diamond Bank merger to attract foreign opportunities, says Wigwe

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Herbert Wigwe, GMD, Access Bank
Herbert Wigwe, GMD, Access Bank

Access Bank Plc will leverage on its merger with Diamond Bank to attract more opportunities from international partners, the bank’s Group Managing Director, with Mr. Herbert Wigwe claimed on Friday.

He stated this while speaking on the benefits of the merger, saying it would give birth to  more opportunities such as trade finance from international partners.

“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,” he said.

Wigwe explained that the merger was expected to produce the largest banking group in Africa based on its number of customers with more than 29 million customers.

“The resulting entity which will maintain the brand name Access Bank, but with Diamond Bank colors, will have more than 29 million customers, 13 million of which are mobile customers,” he said.

He also the bank would be dominate the African continent with presence in 12 countries, 3,100 ATMS and nearly 32, 000 Point 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,” he stated.

The Access Bank boss said having received the nods of regulators on the merger deal, it is only awaiting the approval shareholders and a meeting in this regard would be convened by both banks in the first week of March.

Wigwe hinted that the merger was expected to be completed in the first half of 2019.

“Access Bank also means, the former’s customers can enjoy access to the latter’s strong balance sheet, ubiquitous presence and solid operational structure,” he maintained.

On the other hand, Mr. Uzoma Dozie, Chief Executive Officer, Diamond Bank said the board of the bank had selected Access Bank as the preferred bidder with respect to a potential merger.

He explained that the proposed merger would involve Access Bank acquiring the entire issued share capital of Diamond Bank in exchange for a combination of cash and shares in Access Bank through a Scheme of Merger.

“Based on the agreement reached by the boards of the two financial institutions, Diamond Bank shareholders will receive a consideration of N3.13 per share, comprising N1 per share in cash,” he said.