Access Bank Loses Bid To Acquire Bidvest Bank Over Unmet Conditions

 

Access Bank has failed in its attempt to acquire Bidvest Bank, after the transaction collapsed due to unmet conditions by the agreed deadline, stalling the Nigerian lender’s expansion plans in South Africa.

Bidvest Group announced on Monday that it has terminated the deal and reopened talks with other potential buyers for its banking subsidiary.

“The parties have been actively working together to secure approvals. It is, however, unfortunate that certain conditions were not fulfilled by Access Bank by the contractually agreed longstop date, resulting in the termination of the transaction,” Bidvest said in a statement.

The group added that Bidvest Bank remains adequately capitalised and operationally stable, noting that it will continue to support the lender while the renewed disposal process is underway.

Bidvest said its decision to exit financial services remains unchanged, describing the sale of its banking unit as a strategic necessity as it refocuses on its core, more profitable businesses. The conglomerate had agreed to sell Bidvest Bank to Access Bank in December 2024 in a deal valued at about R2.8 billion.

However, the proposed acquisition had faced scepticism from ratings agencies. Moody’s downgraded Bidvest Bank’s credit ratings last month, citing uncertainty around the sale and concerns over reduced parental support after a change in ownership.

Access Bank entered the South African market in 2021 following its acquisition of Grobank, but it remains a relatively small player in the country’s banking sector. The collapse of the Bidvest deal comes amid internal changes at Access Bank South Africa, including the planned exit of its chief executive and the departure of other senior executives, according to local media reports.

Bidvest also said it is moving ahead with the sale of its life insurance business, Bidvest Life, to a private equity-led consortium, subject to regulatory approvals and standard closing conditions.

The group said it is confident it will complete the disposal of its financial services assets and accelerate transaction timelines as it sharpens focus on its core operations.