South African lender Nedbank Group has agreed to acquire a 66 percent controlling stake in Kenya’s NCBA Group in a transaction valued at about $856 million, marking one of the largest cross-border banking deals in Africa in recent years. The acquisition will be executed through a tender offer to existing NCBA shareholders, as reported by Reuters.
Under the proposed structure, 20 percent of the consideration will be paid in cash, while the remaining 80 percent will be settled in newly issued Nedbank ordinary shares listed on the Johannesburg Stock Exchange. Following completion, NCBA will become a subsidiary of Nedbank but will retain its brand, local management and listing on the Nairobi Securities Exchange, with the remaining 34 percent of shares continuing to trade freely, according to details cited by ChannelAfrica.
NCBA operates across six African markets, including Kenya, Uganda, Tanzania, Rwanda, Ghana and Ivory Coast, and serves more than 60 million customers, giving Nedbank an immediate and sizeable footprint in East and West Africa. Nedbank chief executive Jason Quinn said the deal aligns with the group’s strategy to expand beyond Southern Africa by combining its balance sheet strength with NCBA’s regional reach and digital banking capabilities, as stated in comments reported by Reuters.
The transaction remains subject to regulatory approvals from banking authorities in multiple jurisdictions. Analysts say the deal underscores growing consolidation in Africa’s banking sector and reflects renewed investor confidence in regional financial services, as lenders seek scale and diversification across high-growth African markets, according to market commentary referenced by Reuters.
