Access Bank Mozambique SA, Atlas Mara Limited and ABC Holdings Limited sign share purchase agreement for the acquisition of African Banking Corporation (Moçambique), SA

Maputo – Access Bank Mozambique SA, Atlas Mara Limited, and ABC Holdings Limited announce that they have signed a definitive agreement regarding a proposed acquisition of African Banking Corporation (Moçambique), SA (“BancABC”) by Access Bank Mozambique, SA followed by a subsequent merger of the two entities. Once implemented, the combined bank is expected to strengthen its financial and regulatory ratios, resulting in a robust capital structure that will support sustainable growth and ensure the banks’ customer base benefits from being a part of one of the biggest African Banking groups.
The transaction is subject to the meeting of various conditions precedent which, amongst others, include regulatory approvals by the Central Bank of Mozambique, the local and regional competition commission authorities, and all relevant entities.
The key highlights of the proposed transaction include:

  • A complementary transaction that combines Access Bank Mozambique’s wholesale and trade finance capabilities with BancABC’s retail and commercial banking operations.
  • Access Bank Mozambique and BancABC customers to benefit from a well-capitalised bank, a more sophisticated product and service offering, and a broader geographical network.
  • Following the legal merger of the two banks, the enlarged entity is expected to be the 7th-largest bank in the country and will be a majority owned subsidiary of Access Bank Plc

Commenting on the transaction, Access Bank Mozambique Managing Director Mr. Marco Abalroado, said: “I am delighted that we have reached an agreement for a proposed merger with BancABC, a dynamic retail and commercial bank with a presence across six provinces in Mozambique. This merger, which will see the combined bank becoming a relevant bank in Mozambique, will increase our scale and improve our operating leverage by enabling us to deliver our existing retail and wholesale offerings to a wider base of customers in Mozambique while positioning the bank for growth in the long-term trajectory for the country. The merger will also enable a continued focus on robust human capital in the combined banks to best serve our customers and contribute to the economy.
"This acquisition followed by a merger would provide Access Bank Mozambique customers with access to a wider network of branches and agents across the country, while BancABC’s customers would benefit from Access Bank’s best in class digital capability, trade finance expertise and international banking. Through this transaction, Access Bank Mozambique and BancABC will play a greater role in Mozambique’s economic expansion by building on BancABC’s contributions to develop entrepreneurs and SMEs and making Access Bank’s trade finance, treasury, and corporate lending expertise available to Mozambican MNCs and SMEs via the enhanced distribution network, as well as to largely contribute to the increase of financial inclusion in Mozambique”.
Tawanada Munaiwa, MD of BancABC, said: “We are very pleased to reach an agreement with Access Bank for the proposed merger. This transaction represents an opportunity for BancABC Mozambique to benefit from substantially increased scale and the broader strengths of Access Bank., including world class digital banking capabilities and extensive trade finance expertise. In the future our valued clients can expect continued stability and customer service, along with new products and services, as the combined institution pursues sustainable growth. Our mission to serve our customers during this challenging time, and to continue to contribute to Mozambique’s economic growth and prosperity, will benefit considerably from this proposed merger, and we look forward to working with the Access Bank team.
Access Bank is a leading full-service commercial bank and one of the largest banks in Africa, operating through a network of more than 600 branches and service outlets, spanning three continents, 12 countries and 36 million customers, and with more than USD 21 billion in total assets.
The proposed transaction represents an important step in Atlas Mara’s repositioning of its group as a streamlined holding company with an increased focus on a core footprint.  The merger will see BancABC’s strong retail, commercial and SME loan capability and branch network leverage Access Bank’s best in class digital platform and product suite to create a platform for further growth and the facilitation of financial inclusion for the unbanked in the country. Corporate customers benefit from Access Bank’s strengths in trade finance, treasury, international payments and loans through the wider distribution network of the enlarged bank and Access Bank’s presence in the key trade corridors which connect Africa with Dubai, China, Lebanon and Mumbai and the global hubs of UK, US and Hong Kong.
Access Bank Mozambique and BancABC will draw on Access Bank’s and Atlas Mara’s strong track records of post-merger integration to ensure a successful combination.