Zenith Bank - Explore Endless Possibilities
ADVERTISEMENT
The Sun Nigeria
  • Home
  • National
  • Columns
    • Broken Tongues
    • Capital Matters
    • Diabetes Corner
    • Duro Onabule
    • Femi Adesina
    • Frank Talk
    • Funke Egbemode
    • Insights
    • Kalu Leadership Series
    • Kunle Solaja
    • Offside Musings
    • PressClips
    • Public Sphere
    • Ralph Egbu
    • Shola Oshunkeye
    • Sideview
    • The Flipside – Eric Osagie
    • Tola Adeniyi
  • Business
  • Politics
  • Entertainment
  • The Sun TV
  • Sporting Sun
No Result
View All Result
  • Home
  • National
  • Columns
    • Broken Tongues
    • Capital Matters
    • Diabetes Corner
    • Duro Onabule
    • Femi Adesina
    • Frank Talk
    • Funke Egbemode
    • Insights
    • Kalu Leadership Series
    • Kunle Solaja
    • Offside Musings
    • PressClips
    • Public Sphere
    • Ralph Egbu
    • Shola Oshunkeye
    • Sideview
    • The Flipside – Eric Osagie
    • Tola Adeniyi
  • Business
  • Politics
  • Entertainment
  • The Sun TV
  • Sporting Sun
No Result
View All Result
The Sun Nigeria
No Result
View All Result
Home Business

Customers await outcome of Access, Diamond banks’ merger

12th February 2019
in Business
0
Customers await outcome of Access, Diamond banks’ merger
0
SHARES
206
VIEWS
Share on FacebookShare on Twitter
ADVERTISEMENT

Ayo Alonge

The strategic merger of Access Bank with the erstwhile Diamond Bank is first with a recourse to the fact that such is expectedly needful for consolidating the financial capacity of banking operations in Nigeria.

In an announcement that hit the banking industry by storm, two of Nigeria’s leading banks, Access Bank and Diamond Bank, announced a proposed merger which will see the former become the largest bank in Nigeria in terms of asset base and Africa’s biggest retail bank in terms of customer base.

Financial pundits have had to say that the merger is a welcome development as it reflects a consolidation which can only mean well for clients and customers alike. With the announcement of the proposed merger and possible ratification by the Central Bank of Nigeria (CBN), it is now established that customers of both banks are in for a good time. 

Though the completion of the merger is subject to shareholders and regulatory approvals, stakeholders from both parties are saying that a collaboration between them will see a massive growth in the industry through a healthier and stronger competition, expanding the operations of both institutions while functioning as a single unit, increase efficiency and place Access Bank firmly in position as a dominant entity among its competitors. Its potential for economies of scale is also an advantage for shareholders and depositors as they are left with no doubt as to the commitment of the bank to be the gateway for business, enterprise, and creativity coming into Africa.

On the reason for the merger, according to Access Bank’s Group Managing Director/Chief Executive Officer, Herbert Wigwe,  “Access Bank and Diamond Bank have complementary operations and similar values and a merger with Diamond with its leadership in Digital and Mobile-led Retail Banking could accelerate our strategy as a significant corporate and retail bank in Nigeria and a Pan-African financial services champion.”

From Wigwe’s submission, it appears that Access Bank plans to surpass competition on all indices and factors by leveraging on the technological (digital and mobile) strength of Diamond Bank to accelerate its set mission to take over financial territories across Africa. This drive is in line with its five-year strategic plan whose cornerstone is to tell the African story of strength, grit, tradition, and integrity in a way that it has not been done before.

From a small player in the 90s, Access Bank has grown rapidly to be a behemoth in the industry. It became a tier-one banking institution following the 2004 consolidation exercise mandated by the Chukwuma Soludo-led CBN and later took control of Intercontinental Bank Plc. in 2012, a move which cemented its position as an undisputed top three player in the Nigerian banking industry.

Access Bank’s recent move to merge with Diamond Bank seems to be a testament to its ambition to be a leading player in Africa and one to beat in the global space. The bank recognises the role technology plays in accelerating these ambitious objectives. It is, therefore, little wonder that it chose to merge with Diamond Bank, a banking institution known to have grown its asset and customer base with the help of technology.

Chief Executive of Diamond Bank, Uzoma Dozie, touched on the similarities of the banks’ vision and the role of people and technology in the next growth phase of both companies. He said, “there is a clear strategic rationale for the proposed merger and strong complementarities between the two institutions. While Diamond Bank has pioneered Nigeria’s largest technology-led retail banking platform, Access Bank is one of Nigeria’s leading full-service commercial banks. Consolidation in the Nigerian banking industry is an inevitable, natural progression in a sector where the gap between tier one and tier two banks has been widening and scale has become critical; where technology will disrupt the traditional business model while enabling broader financial inclusion.”

The proposed merger will involve Access Bank acquiring the entire issued share capital of Diamond Bank in exchange for a combination of cash and shares in Access Bank via a Scheme of Merger. Based on the agreement reached by the boards of the two banks, Diamond Bank’s shareholders will receive a consideration of N3.13 per share, comprising N1.00 per share in cash and N2.13 per share equivalent in newly issued shares of Access Bank to be exchanged for the outstanding shares of Diamond Bank.

The offer represents a premium of 260 per cent to the closing market price of N0.87 per share of Diamond Bank on the Nigerian Stock Exchange (NSE) as of December 13, 2018, the date of the final binding offer.

If regulatory approvals are received by the bank’s stakeholders and the Securities and Exchange Commission (SEC), which recently signified that it is aware of the proposed merger, it will definitely be one of the most significant corporate deals in sub-Saharan Africa this year.

Commenting on the development, one of the customers who said she has accounts with both banks, Barbara Onyeuka, spoke to Daily Sun. Her words: “I have accounts with both banks and just recently, I got a mail from Access Bank informing me about the merger. I don’t think I have any cause to worry because I am still able to use my apps and I have not noticed any major difference in their operations. For me, I think the merger is a step in the right direction. Diamond Bank didn’t get to that point where you start thinking they might fold up. Access Bank has been a very strong bank too. So, with this merger, I have more confidence banking with them that my money is in safe hands.”

Rapheal

Rapheal

Related Posts

PORT
Business

Warri port to attract $1.6m annual concession fee — BPE

15th February 2019
How technology is reshaping real estate industry
Business

How technology is reshaping real estate industry

15th February 2019
Business

Housing: Pertinence targets low income earners

15th February 2019
Next Post

BUA rewards customers with 25 cars, cash gifts

MTN drags Kogi govt to court over shutdown of base stations

ENA Prospects, MTN tackle pre-registered SIM card agents

Late passage of 2019 budget, others ’ll moderate 2019 growth –ICAN

Late passage of 2019 budget, others ’ll moderate 2019 growth –ICAN

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

No Result
View All Result

Highlights

Tinubu promises generous cash reward to party members who win their units

Man caught in Umuahia with already-written elections results sheets

NSCDC warns IPOB to stay at home for own interest

Steer clear from polling stations or risk deportation, Immigration boss warns foreigners in Anambra

FG approves FETHA as AE-FUNAI teaching hospital

Kano police arrest over 500 thugs ahead Saturday’s elections

Trending

 Eminent Nigerians caution INEC on polls credibility
Cover

 Eminent Nigerians caution INEC on polls credibility

15th February 2019
0

 Bianca Iboma Ahead the presidential and National Assembly polls, a former Nigerian Ambassador to the United Kingdom,...

Journalist tasks Nigerians to ‘vote with ink not blood’

Journalist tasks Nigerians to ‘vote with ink not blood’

15th February 2019
WANEP

WANEP opens situation room, deploys 114 observers

15th February 2019
TINUBU

Tinubu promises generous cash reward to party members who win their units

15th February 2019
RESULTS

Man caught in Umuahia with already-written elections results sheets

15th February 2019
The Sun Nigeria

Follow us on social media:

Categories

  • Abuja Metro (570)
  • Arts (11)
  • Broken Tongues (123)
  • Business (8,114)
  • Business Week (61)
  • Columns (5,524)
  • Cover (18,795)
  • Culture (25)
  • Duro Onabule (110)
  • Editorial (1,117)
  • Education Review (648)
  • Effect (153)
  • Elections (1,032)
  • Entertainment (1,521)
  • Events (30)
  • Features (2,298)
  • Femi Adesina (4)
  • Food & Drinks (82)
  • Frank Talk (99)
  • Funke Egbemode (106)
  • Gallery (5)
  • Health (873)
  • Insights (119)
  • Kalu Leadership Series (47)
  • Kunle Solaja (3)
  • Kunle Solaja (23)
  • Letters (80)
  • Lifeline (1,288)
  • Lifestyle (80)
  • Literary Review (418)
  • Marketing Matters (45)
  • National (38,638)
  • News (714)
  • Offside Musings (46)
  • Opinion (3,172)
  • oriental news (568)
  • Politics (6,144)
  • PressClips (143)
  • Public Sphere (104)
  • Ralph Egbu (129)
  • Shola Oshunkeye (18)
  • Sideview (1)
  • South-west Magazine (593)
  • Sporting Sun (2,550)
  • Sports (7,275)
  • Sun Girl (893)
  • Tea Time (27)
  • The Flipside – Eric Osagie (69)
  • The Sun Awards Live (67)
  • The Sun TV (71)
  • Thoughts & Talks (30)
  • Time Out (98)
  • Today's cover (14)
  • Tola Adeniyi (63)
  • Travel (15)
  • Travel & Tourism (75)
  • Trending (79)
  • TSWeekend (921)
  • Turf Game (110)
  • Uncategorized (9)
  • Updates (106)
  • Views from Abroad (56)
  • Voices (116)
  • World (14)
  • World News (4,032)
  • Home
  • About Us
  • Paper Ad Rate
  • Online Ad Rate
  • The Team
  • Contact Us
  • Privacy Policy

© 2018 The Sun Nigeria - Managed by Netsera.

No Result
View All Result
  • Home
  • National
  • Columns
    • Broken Tongues
    • Capital Matters
    • Diabetes Corner
    • Duro Onabule
    • Femi Adesina
    • Frank Talk
    • Funke Egbemode
    • Insights
    • Kalu Leadership Series
    • Kunle Solaja
    • Offside Musings
    • PressClips
    • Public Sphere
    • Ralph Egbu
    • Shola Oshunkeye
    • Sideview
    • The Flipside – Eric Osagie
    • Tola Adeniyi
  • Business
  • Politics
  • Entertainment
  • The Sun TV
  • Sporting Sun

© 2018 The Sun Nigeria - Managed by Netsera.