Nigeria's Access Bank buys $60 mln stake in South Africa's Grobank
By Chijioke Ohuocha
ABUJA, March 30 (Reuters) - Nigeria's biggest lender Access Bank ACCESS.LG has invested around $60 million to acquire a stake in South Africa's Grobank, its chief executive said on Tuesday, to become the first Nigerian lender to venture into South Africa.
Access invested both equity and debt in the South African bank, part of a regional expansion to tap into correspondent and trade banking deals on the continent, Herbert Wigwe told CNBC Africa Television.
Wigwe said Access will expand trade finance capability within Grobank which is currently focusing on the agricultural sector in South Africa.
The bank on Friday said it had received regulatory approvals for the acquisition which is expected to close in the second quarter of 2021.
In August, Access Bank agreed to buy loss-making Cavmont Bank from the Zambian arm of Namibian financial services group Capricorn CCHZ.LZ, for a nominal fee of 1 kwacha ($0.0014).
Access is restructuring itself into a holding company and has received approval from Nigeria's central bank.
(Reporting by Chijioke Ohuocha; Editing by Kirsten Donovan and Louise Heavens)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.