Access Bank enters agreement to acquire 100% stake In South Africa based Bidvest Bank

Founded in 2000, Bidvest Bank is a prominent South African financial institution providing a diverse range of services, including corporate and business banking solutions and diverse retail banking products, as of its financial year ended June 2024, Bidvest Bank reported total assets equivalent to c. USD665.0 million and audited profit before tax of $20.0m.

The acquisition is expected to close in the second half of 2025, subject to regulatory approvals. Upon conclusion of this acquisition, Bidvest Bank will be merged with the Bank’s existing South African subsidiary to create an enlarged platform to anchor the regional growth strategy for the SADC region.

Roosevelt Ogbonna, managing director/chief executive officer of Access Bank Plc, commented:

“This acquisition supports our ambition to expand across Africa and solidify our presence in key markets, with South Africa being a top priority. It underscores our commitment to establishing a more resilient, diversified, and sustainable business model that leverages technology to meet evolving customer needs. Bidvest Bank provides a unique opportunity to blend its strong local expertise with Access Bank’s robust trade and retail banking capabilities, creating a platform for long-term growth and value creation.”

Bidvest Group chief executive, Mpumi Madisa, added:

“As a well-respected, experienced, and prominent financial services entity, I am pleased that Access Bank meets our objectives and provides reassurance for the continued sustainability and prosperity of the bank. It will enable the bank to advance, scale, and sustainably grow in today’s fast-changing, technology-driven, and highly competitive sector."

The transaction aligns with Access Bank’s expansion objective to build the scale needed to become a major player in each market its market. By leveraging Bidvest Bank’s robust local capabilities and Access Bank’s established pan-African presence, the Bank will have increased capacity for intra- and inter-Africa trade, connecting businesses and creating new opportunities for regional integration.

South Africa’s banking sector is the largest in Africa, with combined tier 1 capital exceeding $42.2bn in 2022. The industry demonstrated resilience in the first half of 2024, achieving headline earnings growth of 2.5% year-on-year and maintaining strong profitability (ROE of 17%) despite challenging operating conditions.

Key conditions precedent to the completion of this transaction includes obtaining regulatory approvals under South Africa’s Banks Act, 1990; Companies Act, 2008 and the Takeover Regulations promulgated thereunder; Competition Act, 1998; and the Financial Sector Regulation Act, 2017, as well as the authorisation of Nigeria’s Central Bank.

Access Bank South Africa will leverage the acquisition to strengthen its business and SME banking, foreign exchange services, and alliance banking capabilities while launching new services tailored to the South African market.