Nedbank Moves to Acquire Majority Stake in East Africa’s NCBA Group

Nedbank Moves to Acquire Majority Stake in East Africa’s NCBA Group. Nedbank Group Limited has submitted an offer to acquire approximately 66 percent of NCBA Group PLC, marking a proposed expansion of its presence in East Africa’s financial services sector. The total purchase consideration is valued at about R13.9 billion, calculated using a Nedbank issue price of ZAR 250.00 per share.

If completed, the transaction would result in NCBA becoming a subsidiary of Nedbank. The remaining 34 percent of NCBA shares would continue to trade publicly on the Nairobi Securities Exchange. The proposed consideration is structured as a mix of 20 percent cash and 80 percent new Nedbank ordinary shares to be listed on the Johannesburg Stock Exchange.

Nedbank Group Chief Executive Jason Quinn said the proposed acquisition represents a milestone in the group’s strategy to expand its footprint across southern and East Africa. He stated that the two organisations bring complementary strengths, with NCBA contributing brand presence, a regional network, digital capabilities and broad customer reach, while Nedbank offers corporate and investment banking expertise, cross border structuring capabilities and a strong balance sheet.

According to Nedbank, East Africa has been identified as a region of strategic importance. The group cited macroeconomic fundamentals, economic scale, population growth and trade linkages connecting Africa with the Middle East, India and Asia, as well as regulatory and operating conditions, as factors underpinning its interest.

Under the proposal, NCBA would remain independently governed and retain its brand, local leadership team and listing on the Nairobi Securities Exchange. Nedbank currently operates only a representative office in the region, and the announcement notes that no in country operational integration would be required.

NCBA is headquartered in Nairobi and operates in Kenya, Uganda, Tanzania and Rwanda, while also offering digital banking services in Ghana and Ivory Coast. Formed in 2019 through the merger of NIC Group PLC and Commercial Bank of Africa Limited, the group serves more than 60 million customers and operates 122 branches. It reports managing KES 665 billion in assets, disbursing over KES 1 trillion in digital loans annually and achieving an average return on equity of about 19 percent since 2021.

The proposed transaction remains subject to regulatory and shareholder approvals and is expected to conclude by the third quarter of 2026. No further financial or operational details were disclosed in the announcement regarding timelines for integration, changes to staffing, or adjustments to existing product offerings within either banking group at this stage publicly.