Kenya’s KCB Group Seeks Approval to Acquire 2 Banks in Rwanda and Tanzania for Sh4.4 Billion

Kenya’s KCB Group has filed a formal application seeking to acquire two banks in Tanzania and Rwanda for Sh4.4 billion ($40 million). 

The application was made to the regional competition body—Comesa Competition Commission, which has since started collecting views from interested parties including competitors, suppliers, and customers, over the two deals. 

“The Commission will determine among other things whether or not the merger is likely to substantially prevent or lessen competition within the Common Market and whether the merger is or would be contrary to the public interest,” the commission said in a notice.

KCB plans to acquire a 62.06 percent stake in Banque Populaire Du Rwanda (BPR) and a 100 percent share in African Banking Corporation Tanzania Limited (BancABC).

Last year, the leading Kenyan lender, which already has a presence in Rwanda and Tanzania, signed a share purchase agreement with London-based Atlas Mara Limited and committed to complete the deal in six months.

KCB will pay $32 million for the acquisition of BPR and $8 million on BancABC, with both transactions being settled in cash.

However, the final amount payable by KCB will be based on the final book value of the two banks at the completion of the transactions.