Nedbank has secured regulatory approval to acquire a 66% majority stake in NCBA Group in a transaction valued at approximately R13.9 billion. The decision marks one of the most significant cross-border banking deals in Africa and signals a bold expansion into East Africa’s high-growth financial sector.
Kenya’s Capital Markets Authority (CMA) granted Nedbank an exemption under local takeover regulations. As a result, the bank will not need to extend a mandatory offer for 100% of NCBA shares. Instead, Nedbank can proceed with its planned 66% acquisition, clearing a critical hurdle that previously placed the transaction under regulatory review.
Importantly, the deal remains subject to the final waiver conditions. However, investor confidence appears strong. Nedbank has already secured Irrevocable Undertakings from NCBA shareholders representing approximately 77.54% of the total issued shares. Consequently, the acquisition enjoys substantial backing from key stakeholders.
The remaining 34% of NCBA shares will continue trading publicly on the Nairobi Securities Exchange. This structure ensures that public investors retain exposure to one of East Africa’s largest financial services groups.
The total purchase consideration stands at R13.9 billion, based on a Nedbank issue price of R250 per share. Furthermore, the transaction combines 20% cash with 80% new Nedbank ordinary shares listed on the Johannesburg Stock Exchange. This blended approach allows Nedbank to preserve capital while aligning shareholder interests across both markets.
Strategically, the acquisition accelerates Nedbank’s ambition to diversify beyond its Southern African core. When the deal was first announced, CEO Jason Quinn highlighted East Africa as a priority growth region. He emphasized that partnering with a leading institution like NCBA would help deliver on the bank’s long-term expansion goals.
NCBA operates 122 branches and serves more than 60 million customers, making it Africa’s largest banking group by customer numbers. Through this acquisition, Nedbank gains immediate scale in Kenya and broader East Africa. In addition, the transaction strengthens cross-border financial integration between Southern and East African markets.
This move reflects a broader trend of consolidation within the African banking sector. Moreover, it underscores growing confidence in Kenya’s financial services industry and its regulatory framework. If all remaining conditions are satisfied, NCBA will operate as a subsidiary of Nedbank, significantly expanding the South African lender’s continental footprint.
The R13.9 billion NCBA acquisition positions Nedbank at the center of Africa’s evolving banking landscape. As regional competition intensifies and digital adoption accelerates, the deal could reshape market dynamics across multiple African economies.
