Access Bank acquires Diamond Bank

Reports have confirmed that the Central Bank of Nigeria (CBN) in the course of the week would make public the announcement of the transaction leading to Access Bank’s acquisition of Diamond Bank.

Other sources said the deal has been sealed, awaiting final ratification from the regulatory body.

The acquisition was made possible by the CBN in a bid to further consolidate the banking industry, sources informed.

Diamond Bank had earlier announced its decision to focus on national operations wherby dropping its international operating licence. This is following capitalisation issues.

Uzoma Dozie, the bank’s Chief Executive Officer, confirmed the development on Friday.

According to Dozie, “With this approval, the bank will cease to operate as an international bank.

“The re-licensing as a national bank supports Diamond Bank’s objective of streamlining its operations to focus resources on the significant opportunities in the Nigerian retail banking market, and the economy as a whole. The move follows Diamond Bank’s decision to sell its international operations, which included the disposal of its West African Subsidiary in 2017 and Diamond Bank UK, the sale of which is currently in its final stages.”

“The change to national bank status also enables the bank to maintain a lower minimum capital requirement of 10 per cent, as against 15 per cent required for international banks.”

Reports had revealed that the bank recorded its worst month on record in November with share plunging to 0.61k per unit on November 30, 2018.