The NIC Group PLC and Commercial Bank of Africa Limited have started discussions regarding a potential merger.
A statement released on Thursday and signed by NIC chairman James Ndegwa and Commercial Bank of Africa Ltd’s Destario Oyatsi stated that successful conclusion of the discussions the merger would create one of the largest financial services groups in the region.
However, an eventual merger remains subject to diligence processes, shareholder, regulatory and other approvals.
During the discussions the two entities will continue to operate independently.
“It is the view of the two Boards that the potential merger would bring together the best in class retail and corporate banks with strong potential for growth in banking and wealth management,” the statement reads.
A combined entity would create a complementary base of more than 38 million customers, a digital proposition and a robust corporate and asset finance offering.
The Boards believe combining the business of two profitable entities will enhance capacity through capital consolidation and strong liquidity, all which will capture growth opportunities.
“This would allow it to invest in future growth and in new technology to create wider services to customers, as well as deliver deeper financial inclusion while generating attractive returns to shareholders,” the statement continued.
Ndegwa and Oyatsi believe a combined larger group will provide new opportunities for employee development and growth.
“The combined group will be strongly placed to play a bigger and more significant role in the banking sector and the economies of Kenya, the region and beyond.”