South Africa’s Nedbank has made a cash-and-shares offer to buy 66% of Kenya’s NCBA Group in a transaction valued at about $855.5 million, tightening the link between two banks that sit on opposite ends of Africa’s fastest-growing retail markets.
NCBA said the proposal prices the lender at about 1.4 times book value. The structure keeps NCBA listed on the Nairobi Securities Exchange, with the remaining 34% of shares continuing to trade locally, while NCBA would become a subsidiary of Nedbank if the deal closes.
Shareholders who tender their shares would receive 20% of the consideration in cash and 80% in newly issued Nedbank ordinary shares listed on the Johannesburg Stock Exchange. The share-heavy mix reduces the immediate cash cost for Nedbank, while giving NCBA investors exposure to the South African bank’s performance.
The deal brings together two leaders with different strengths. According to Nedbank’s Chief executive officer, Jason Quinn, this deal serves as a better entrance into East Africa, choosing an established platform over the slower work of building from scratch. While NCBA CEO, John Gachora has framed it as bringing in a strategic partner with deeper capital and cross-border capability, one that can help the group grow in its current countries and widen its options for the next set of markets.
Formed in 2019 through the merger of NIC Group and Commercial Bank of Africa, NCBA operates 122 branches across Kenya, Uganda, Tanzania and Rwanda, and offers digital banking services in Ghana and Côte d’Ivoire. The bank has built a large digital lending and payments franchise, which has helped it scale beyond its home market.
The proposed acquisition fits a wider trend of African banks pursuing cross-border consolidation to capture regional trade flows and deepen digital retail banking in high-growth corridors.