NCBA takeover reports stir market as Stanbic moves to clarify

Stanbic Bank has dismissed reports suggesting it is in the process of acquiring NCBA Bank, following widespread speculation that triggered a rally in NCBA’s share price.

Earlier this week, reports emerged that , Standard Bank Group, had instructed its Kenyan subsidiary, Stanbic Holdings, to initiate buyout talks with NCBA Group.

The report suggested that negotiations could be concluded within months, potentially reshaping Kenya’s banking landscape.

Following the report, NCBA’s shares surged by 8.27 per cent to Sh75.25 on Tuesday, up from Sh69.50, as investors responded to the news of the possible merger.

If the acquisition were to proceed, the combined entity would hold assets worth about Sh1.1 trillion, positioning it as Kenya’s third-largest bank after Equity Group Holdings Plc and KCB Group Plc.

Stanbic issues statement denying speculation

In a statement released on Wednesday, Stanbic Holdings distanced itself from the claims, terming them speculative and unverified.

The lender clarified that any significant corporate developments would be announced officially through the proper regulatory channels.

Stanbic Holdings Plc notes the media speculation in relation to a potential transaction. Stanbic Holdings Plc however does not comment on market or media speculation and any material developments regarding potential corporate activity will always be communicated through the appropriate channels, in accordance with our regulatory obligations and stock exchange listing requirements.

This clarification comes amid heightened investor interest and discussions about potential consolidation in Kenya’s banking sector, which has seen several mergers and acquisitions over the past decade.

NCBA’s growth and market position

NCBA Group, which operates 121 branches across Kenya, Uganda, Tanzania, and Rwanda, was formed in 2019 following the merger of Commercial Bank of Africa (CBA) and NIC Bank.

Stanbic Bank, on the other hand, operates 30 branches in Kenya and is part of Standard Bank Group, Africa’s largest banking group by assets.