The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Access Bank to take over Diamond Bank in $200 million deal

The two Nigerian banks’ merger would form the country’s largest financial institution, but it is somewhat overshadowed by Diamond’s troubled legacy loans to the oil and energy sectors.

Access Bank and Diamond Bank announced on 17 December their intention to merge, for a total consideration of N72.5 billion ($200 million) – confirming a rumour that had been circulating for months but which Diamond had rejected just weeks before.

On November 12, as word of a possible merger was spreading, Diamond Bank reacted in a statement: “We wish to state categorically that the bank is not in discussions with any financial institution at the moment on any form of merger or acquisition.”

How the two banks could have begun discussions – and reached an agreement – in less than a month is hard to fathom. Asked about this, Chiamaka Ezenwa, head of investment banking for West Africa at Exotix, which advised Diamond on the deal, said she could not share the exact timeframe for negotiations, but that “it was a pretty quick transaction”.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to Euromoney.com and Asiamoney.com analysis and receive expertly-curated updates direct to your inbox.

 

Already a user?

Login now

 

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree