{"id":866930,"date":"2026-07-21T10:00:00","date_gmt":"2026-07-21T08:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=866930"},"modified":"2026-07-21T10:08:10","modified_gmt":"2026-07-21T08:08:10","slug":"nedbank-buying-international-bank-for-r13-9-billion","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/banking\/866930\/nedbank-buying-international-bank-for-r13-9-billion\/","title":{"rendered":"Nedbank buying international bank for R13.9 billion"},"content":{"rendered":"\n

Nedbank has received the required support to acquire a majority stake in Kenya’s NCBA Group for approximately R13.9 billion. <\/p>\n\n\n\n

NCBA currently trades on the Nairobi Securities Exchange and will continue to do so, with the deal central to Nedbank’s East African expansion, given the region’s strong economic growth. <\/p>\n\n\n\n

Nedbank announced a deal that would acquire 66% of the issued ordinary shares of NCBA from NCBA
shareholders via the allocation of new Nedbank shares and around R3 billion in cash. <\/p>\n\n\n\n

The bank still has the opportunity to make an excess application for up to 100% of its NCBA Shares, subject to the scaling\/allocation mechanics. <\/p>\n\n\n\n

The offer closed at 17h00 and was accepted by NCBA shareholders who held 1 316 357 895 NCBA Shares, representing 79.90% of the NCBA Shares in issue.<\/p>\n\n\n\n

Nedbank has thus achieved its targeted 66% shareholding in NCBA and will issue roughly 43.6 million new Nedbank Group Ordinary Shares to NCBA Shareholders. <\/p>\n\n\n\n

The group will also make a cash payment of around KES23.2 billion, which works out to about R3 billion, when using the spot KES\/ZAR exchange rate of 7.84 as at 20 July 2026.<\/p>\n\n\n\n

The final results of the offer will be announced by no later than the 10th trading day after the Settlement Date. <\/p>\n\n\n\n

Regulatory approvals have been obtained from the Prudential Authority and the Financial Surveillance Department of the South African Reserve Bank. <\/p>\n\n\n\n

Nedbank also received approvals from regulators in Kenya, Rwanda, Tanzania and the East African Community Competition Authority<\/p>\n\n\n\n

Outstanding regulatory approvals are expected to be completed towards the end of the third quarter of 2026. <\/p>\n\n\n\n

The group still expects the completion date of the transaction to be at the end of the third
quarter or early in the fourth quarter of 2026.<\/p>\n\n\n\n

Didn’t expect it <\/h2>\n\n\n
\n
\"\"<\/a>
Nedbank CFO Mike Davis<\/figcaption><\/figure><\/div>\n\n\n

Speaking with BusinessTech earlier this year, Nedbank CFO Mike Davis said the chance to buy NCBA was a slight surprise, as Nedbank did not expect such a high-calibre bank to be acquired. <\/p>\n\n\n\n

NCBA is a tier-1 bank with over R85 billion in assets, serving over 60 million customers and operating over 100 branches.<\/p>\n\n\n\n

The bank was formed in 2019 through the merger of NIC Group PLC and Commercial Bank of Africa Limited, with operations in Kenya, Tanzania, Uganda, and Rwanda, and digital banking services in Ghana and the Ivory Coast. <\/p>\n\n\n\n

Davis noted that a strong selling point for NCBA was the far higher growth rates in East Africa, where\u00a0markets are set to grow by 5% or more in 2026.<\/p>\n\n\n\n

South Africa is expected to see stronger growth in the short-to-medium term, but 2026 is again expected to see around 1% GDP Growth. <\/p>\n\n\n\n

Davis added that Nedbank will also bring its own expertise to NCBA, including its Corporate and Investment Banking (CIB) team’s infrastructure finance capabilities.<\/p>\n\n\n\n

He added that the South African operations could also learn from NCBA’s technological capabilities.<\/p>\n\n\n\n

Although NCBA will be part of a larger group, Davis said that the existing NCBA management team will decide whether to expand into new territories.<\/p>\n\n\n\n

NCBA operates in West Africa through its digital services in Ghana and the Ivory Coast, but Nedbank recently cut back in the region after selling its $100 million stake in Togo-based Ecobank Transnational Incorporated.<\/p>\n","protected":false},"excerpt":{"rendered":"

Nedbank is close to completing its acquisition of a majority share in Kenya’s NCBA Group.<\/p>\n","protected":false},"author":95,"featured_media":856806,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"posted","_sma_x_autopost_error":"","_sma_x_post_id":"2079476731245711724","_sma_x_attempts":1,"footnotes":""},"categories":[961],"tags":[1799],"class_list":["post-866930","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","tag-nedbank"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/866930","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=866930"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/866930\/revisions"}],"predecessor-version":[{"id":866943,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/866930\/revisions\/866943"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/856806"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=866930"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=866930"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=866930"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}