Nedbank's R13.9bn bid to acquire 66% of NCBA Group: A strategic move in East Africa

Nedbank has submitted an offer to acquire roughly 66% of NCBA Group, one of East Africa’s leading financial services groups for around R1.9 billion based on the Nedbank issue price of  R250.00 per share.

Nedbank Group is one of Africa’s largest banking groups, with operations in South Africa, Namibia, Eswatini, Mozambique, Lesotho and Zimbabwe, and representative offices in other African countries, including Kenya, where it continues to build its presence and services.

Nedbank said in a statement on Wednesday the successful completion of the transaction will result in NCBA becoming a subsidiary of Nedbank, while the remaining 34% of NCBA shares will continue to trade publicly on the Nairobi Securities Exchange (NSE).

Nedbank's share on the JSE rose 0.33% to R274.24 in late trade. 

The proposed consideration will be structured as 20% cash portion and 80% new Nedbank ordinary shares listed on the Johannesburg Stock Exchange.

Nedbank Group CEO Jason Quinn said the proposed acquisition represents a milestone in Nedbank’s strategy to grow Nedbank’s southern and East African footprint.

“The proposed deal brings together two organisations with highly complementary strengths. NCBA offers a strong brand presence, an extensive regional network, advanced digital capabilities and deep customer reach which naturally aligns with Nedbank’s established Corporate and Investment Banking expertise, cross‐border structuring capabilities, andstrong balance sheet. By combining NCBA’s substantial local presence and Nedbank’s capital base, expertise and enduring commitment to Africa, we see a compelling platform for sustainable growth in the region,” he said.

Nedbank said it has identified East Africa as a region of significant strategic importance, underpinned by strong macroeconomic fundamentals; the size of its economy; a large and growing population; attractive growth prospects; and the primary trade corridor that links Africa with the Middle East, India and Asia, all supported by a robust regulatory environment and relatively stable operating environment.

“We look forward to building a partnership that supports NCBA’s and our clients’ growth trajectories. This will further support economic development across the region while delivering attractive returns for all shareholders,” Quinn said.

NCBA will remain independently governed and retain its brand, local leadership team and NSE listing.

As Nedbank currently operates only a representative office in the region, non‐country operational integration is required. NCBA, headquartered in Nairobi, operates across Kenya, Uganda, Tanzania, Rwanda, and offers digital banking services in Ghana and Ivory Coast.

Formed in 2019 through the merger of NIC Group and Commercial Bank of Africa, NCBA serves more than 60 million customers and has 122 branches, a strong digital lending franchise and a robust regional network. It has an established reputation for innovation, advanced digital banking services, excellence in asset finance, investment banking expertise and a strong regional presence.

NCBA now manages KES 665 billion (R84.4bn) in assets, disburses more than KES 1 trillion (R126.9bn) in digital loans annually, and has delivered an average return on equity of approximately 19% since 2021. The transaction is subject to approvals and is expected to be concluded by the third quarter of 2026.

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