MERGER: Access Bank and Diamond Bank are awaiting final approval from shareholders

Access Bank and Diamond Bank are awaiting final approval from the shareholders to cement their merger plans.
Both financial institutions expected to complete the transaction in the first quarter of 2018.
Access Bank Plc and Diamond Bank Plc are merging to create Nigeria's largest bank by customer size and capital base.

Nigerian lenders, Access Bank and Diamond Bank are awaiting final approval from the shareholders to cement their merger plans.

The banks, during a recent press briefing in Lagos, said the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) had granted approval in principle on the merger plans.

Victor Etuokwu, Access Bank Executive Director, Personal Banking, said the banks were awaiting the final approval which would be granted by the shareholders to complete the merger process.

Access Bank CEO, Herbert Wigwe, Diamond Bank CEO, Uzoma Dozie and other top management at a World Press Conference, December 19, 2018. Access Bank CEO, Herbert Wigwe, Diamond Bank CEO, Uzoma Dozie and other top management at a World Press Conference, December 19, 2018. Pulse Nigeria

Etuokwu said the banks will convene shareholders meetings next month to finalise the deal.

“So far, we have gotten approvals up to approval in principle. There are three approvals that we need for this process.

“The first one is the pre-order approval which is like the first approval, the next approval is the approval in principle.

"The final approval comes after approval in principle and it will come after you have convened your shareholder's meeting,’’ Vanguard newspaper quoted Etuokwu in a report.

He said the shareholder's approval would be taken to court thereafter.

Both financial institutions expected to complete the transaction in the next 60 days.

Uzoma Dozie, CEO of Diamond Bank Dozie, Diamond Bank CEO Pulse Nigeria

In December 2018, Access Bank Plc and Diamond Bank Plc announced plans to merge to create Nigeria's largest bank by customer size and capital base.

Citi Global markets limited and Chapel Hill Denham are financial advisers to Access bank while Banwo & Ighodalo is acting as legal advisers to Access Bank.

Uzoma Dozie, CEO of Diamond Bank, had explained that the merger plan is in the best interest of all stakeholders including, employees, customers, depositors and shareholders.