Nedbank announced on Monday that its proposed acquisition of a controlling stake in NCBA Group has become unconditional after the lender secured the remaining regulatory approvals.
The South African bank’s R13.9 billion (US$855.5 million) offer for 66% of the East African banking group will move to settlement this week, with the transfer of shares expected to begin in early November.
Deal structure
Under the agreement, NCBA will remain a subsidiary of Nedbank while retaining its name, Nairobi headquarters, existing management team and its listing on the Nairobi Securities Exchange. Shareholders who sell their stakes will receive 80% of the consideration in newly issued Nedbank shares and the remaining 20% in cash, leaving 34% of NCBA in public hands.
Background and strategic context
Nedbank first disclosed the transaction in January. Kenya’s capital markets regulator gave conditional clearance in February, allowing the bank to acquire the 66% stake without a full‑company offer. A tender opened in May; by July shareholders had offered 79.9% of NCBA’s shares, which were later reduced to the agreed 66%.
NCBA operates in Kenya, Uganda, Tanzania and Rwanda and runs digital businesses in Ghana and Côte d’Ivoire. Its digital segment contributed 32% of group profit in 2025 and disbursed KES 1.4 trillion (US$10.8 billion) in digital loans.
The acquisition reflects Nedbank’s shift in its Africa strategy. After selling its 21% stake in Ecobank in 2025, the lender has focused on gaining majority control of operations rather than minority positions. Controlling NCBA gives Nedbank access to an established customer base, licences and infrastructure across East Africa, and a platform for potential expansion into Ethiopia and the Democratic Republic of Congo.
The transaction is now unconditional, and both parties expect the share transfer to be completed in early November, subject to standard post‑closing formalities.
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