UK-based Standard Chartered has signed agreements with Nigerian commercial bank Access Bank, to sell its businesses operating in certain sub-Saharan African countries.
Access Bank will acquire Standard Chartered’s operations in Angola, Cameroon, The Gambia, and Sierra Leone, along with consumer, private and business banking (CPBB) unit in Tanzania.
It will provide full range of banking services and continuity for key stakeholders, including the employees and clients of the British lender’s businesses across the five countries.
The transaction expected to be completed over the next 12 months, subject to the approval of the respective local regulators and the banking regulator in Nigeria.
Standard Chartered Africa and Middle East regional CEO Sunil Kaushal said: “Following the announcement we made in April last year, the project is now substantially completed with the announcement for the sale of the five markets and the furtherance of a partnership with Access Bank.
“This strategic decision allows us to redirect resources within the AME region to other areas with significant growth potential, ultimately enabling us to better support our clients.
“We look forward to working closely with Access Bank’s team over the coming months to achieve a successful conclusion to this transaction while safeguarding the interests of our valued clients and prioritising our employees.”
In April last year, Standard Chartered has unveiled its plans to exit from markets including Lebanon, Angola, Cameroon, Gambia, Sierra Leone, Zimbabwe and Jordan, along with the CPBB business in Côte d’Ivoire and Tanzania.
In March this year, the company has announced the sale of its business in Jordan, followed by the sale of its Zimbabwe business in June.
Standard Chartered said that transaction is consistent with its global strategy to achieve operational efficiency, reduce complexity, and drive scale.
Also, the acquisition represents an important step in Access Bank’s goal to serve as a gateway for payments, investment, and trade within Africa and between Africa and the rest of the world.
Access Bank Group managing director Roosevelt Ogbonna said: “Our five-year growth plan will see us build a world-class class payments gateway leveraging the power of technology and a robust network of relationships across our operating countries.
“This will be supported by a dynamic ecosystem of local and international partnerships, enabling us to serve global payments and remittances efficiently.
“With our recent European expansion and our deepened presence in key trading corridors across Africa, we will bridge the gap between cross-border and domestic transfers across all business segments. More importantly, we are committed to impacting our host communities positively.”
