The Competition Authority of Kenya (CAK) has approved the acquisition of the National Bank of Kenya by Access Bank PLC on condition that the Nigerian lender retains at least 80pc of NBK’s current workforce for a period of one year.
According to CAK, the acquisition from KCB Group was based on the finding that the transaction is unlikely to negatively impact competition in the banking industry.
Under the deal, Access Bank Kenya will also retain all its workforce for one year after completion of the transaction.
Currently, National Bank of Kenya has 1,384 employees while the Access Bank Kenya Plc has 316 workers.
Access Bank Plc is listed on the Nigerian Stock Exchange. It operates in Kenya under its subsidiary Access Bank Kenya Plc, a tier 3 bank with a 0.2 percent market share operating 23 branches across 12 counties. Post-merger, the market share of Access Bank Kenya Plc will increase from 0.2pc to 1.9pc and will be reclassified as tier 2.
The proposed acquisition was initially notified to the COMESA Competition Commission (CCC). However, CAK requested for and received referral to consider the transaction under the national competition law on grounds that the merging parties operate in the banking and bancassurance markets in Kenya and that the transaction will primarily affect the Kenyan market.
CAK says the combined market size is unlikely to raise competition concerns. Additionally, the merged entity will face competition from the other banks in Kenya.
