Access Bank’s proposed acquisition of a 100 per cent stake in South Africa’s Bidvest Bank has collapsed after the parties failed to secure all required regulatory approvals.
The development was disclosed by Bidvest Group, the parent company of Bidvest Bank, in an update to shareholders on Monday.
The collapse brings to an end a deal that was expected to significantly expand Access Bank’s footprint in Southern Africa.
Bidvest said the transaction was subject to customary conditions precedent, including regulatory approvals, which were not fully met by the agreed long-stop date.
As a result, the Johannesburg Stock Exchange-listed group confirmed that the sale agreement has been terminated.
“It is unfortunate that certain conditions were not fulfilled by Access Bank plc by the contractually agreed longstop date, resulting in the termination of the transaction,” Bidvest said.
The group added that it has now relaunched the disposal process and is moving ahead with alternative options.
“Bidvest has now relaunched the disposal process. We remain confident in our ability to successfully execute this disposal and will endeavour to accelerate transaction timeframes,” the company stated.
As of the time of this report, Access Bank had not issued a formal response to the development.
Bidvest, however, maintained that the restructuring of Bidvest Financial Services remains sound and that the decision to dispose of the bank is still a strategic imperative.
