Nedbank Group has completed its landmark acquisition of approximately 66% of NCBA Group PLC, securing a major strategic foothold in East Africa and marking one of the most significant cross-border banking transactions on the continent in recent years.
The deal, valued at about R13.9-billion when first announced, sees NCBA formally become a subsidiary of the South African banking giant while retaining its listing on the Nairobi Securities Exchange (NSE), independent governance structures, local leadership and established brand.
The transaction follows the receipt of key regulatory approvals, including clearance from the Central Bank of Kenya, and concludes a process that began when Nedbank unveiled its ambitions to acquire a controlling stake in the East African lender on January 21.
A decisive step in Nedbank’s African strategy
Nedbank Group chief executive Jason Quinn described the completion of the transaction as a transformative moment for both institutions and a major milestone in the bank’s long-term continental expansion plans.
“This landmark transaction establishes a significant presence for Nedbank in East Africa and marks a decisive step forward in our African growth strategy. By connecting two strong banking platforms across Southern and East Africa, we are creating new opportunities for our clients and shareholders, while supporting greater trade, investment and growth across the continent,” said Quinn.
The acquisition gives Nedbank immediate scale in some of Africa’s fastest-growing economies, with NCBA’s operations spanning Kenya, Uganda, Tanzania and Rwanda, as well as digital banking activities in Ghana and Ivory Coast.
East Africa’s attraction grows
Nedbank has increasingly identified East Africa as a key growth market, citing strong economic fundamentals, rapid population growth, expanding trade corridors and increasing links with markets in the Middle East, India and Asia.
Read more: Nedbank’s East Africa expansion plan gains crucial green light
Kenya, regarded as one of Africa’s leading financial hubs, provides Nedbank with a strategic gateway into the broader East African region and access to markets with significant long-term growth potential.
The transaction also brings diversification benefits for Nedbank, reducing its exposure to Southern African markets while strengthening its pan-African footprint.
NCBA remains locally led
Despite becoming part of the Nedbank stable, NCBA’s management structure and brand identity will remain intact.
Quinn emphasised that the lender would continue operating as an independently governed business with strong local roots.
“The business will remain locally anchored and locally led, while gaining the scale, expertise and investment capacity to support further innovation, enhanced client service and solutions, career growth and broader economic opportunity across the region,” he said.
Read more: Nkuhlu reflects on ETI exit as one of few regrets in 22-year Nedbank career
Importantly, because Nedbank’s presence in East Africa has been limited to a representative office, the transaction does not require complex in-country operational integration.
Digital banking powerhouse joins forces with Nedbank
The acquisition hands Nedbank control of one of East Africa’s most successful banking groups.
Formed in 2019 through the merger of NIC Group PLC and Commercial Bank of Africa, NCBA serves more than 60 million customers and operates 122 branches across the region. The lender manages assets of about KES665-billion and disburses more than KES1-trillion in digital loans annually through one of Africa’s largest digital lending platforms.
NCBA has also delivered an average return on equity of roughly 19% since 2021, underlining the quality of the franchise that Nedbank is bringing into its portfolio.
Shareholders back the transaction
The overwhelming majority of NCBA investors supported the deal, with shareholders representing 79.9% of the group’s issued shares accepting the offer.
Under the agreed terms, eligible shareholders will receive consideration based on their chosen settlement option, with some receiving a combination of cash and newly issued Nedbank ordinary shares, while others opted for cash-only settlements.
Read more: Nedbank posts flat interim earnings, lifts dividend as revenue grows
The original structure of the transaction provided for a mix of 20% cash and 80% Nedbank shares issued on the Johannesburg Stock Exchange.
‘A powerful endorsement’ of NCBA
NCBA Group chief executive John Gachora described the transaction as a vote of confidence in the bank’s business model, employees and regional growth prospects.
“This is a proud moment for NCBA and a powerful endorsement of the strength of our business, our people and the markets we serve,” said Gachora.
“With the backing of Nedbank, we are now poised to boldly go after opportunities across the East African region, expand our footprint and bring to market a more sophisticated set of products. The name is the same, the people are the same, but the ambition and capabilities are tremendously magnified.”
A new banking force on the continent
The completion of the transaction creates a banking group with strengthened capabilities across Southern and East Africa, combining Nedbank’s corporate and investment banking expertise, strong balance sheet and cross-border structuring capabilities with NCBA’s regional reach, digital banking leadership and deep local market knowledge.
For Nedbank, the deal represents far more than an acquisition. It is the clearest signal yet of its ambition to become a more influential pan-African banking player, with East Africa now firmly at the centre of its growth agenda.
- Nedbank Group has acquired approximately 66% of NCBA Group PLC in a deal valued at around R13.9-billion, making NCBA a subsidiary while it retains its NSE listing and local governance.
- The acquisition gives Nedbank a strategic foothold in East Africa, with NCBA's operations in Kenya, Uganda, Tanzania, Rwanda, and digital banking in Ghana and Ivory Coast.
- NCBA will remain locally led and independently governed, with its brand and management intact despite becoming part of Nedbank.
- NCBA serves over 60 million customers with 122 branches, manages assets of about KES665-billion, and disburses over KES1-trillion in digital loans annually.
- Shareholders representing 79.9% of NCBA's issued shares accepted the offer, with settlements made in a mix of cash and Nedbank shares.
