Nedbank acquires 66pc stake in NCBA, expands East African presence

NAIROBI: South Africa’s Nedbank Group has completed the acquisition of a 66 per cent controlling stake in NCBA Group Plc, marking a major development in the East African banking sector and expanding its presence into the region.

The transaction, completed after securing the required regulatory approvals, makes NCBA a subsidiary of Nedbank, while the Kenyan-based lender will retain its listing on the Nairobi Securities Exchange (NSE), with the remaining 34 per cent of its shares held by public investors.

The deal gives Nedbank, one of South Africa’s leading financial services groups, a strategic foothold in East Africa, where NCBA operates in Kenya, Tanzania, Uganda, Rwanda, Ivory Coast and Ghana.

NCBA serves more than 60 million customers through 122 branches across its markets, providing Nedbank with an established regional network and access to a growing financial services market.

Nedbank said the investment would support its African expansion strategy, leveraging NCBA’s digital banking capabilities, asset finance business, investment banking expertise and established customer base.

The partnership is also expected to strengthen opportunities for cross-border trade, business expansion and investment between East and Southern Africa.

Nedbank, which is listed on the Johannesburg Stock Exchange and the Namibia Securities Exchange, has operations across Southern Africa, including Namibia, Zimbabwe, Mozambique, Lesotho and Eswatini, as well as offshore centres in London, Dubai, the Isle of Man and Jersey.

NCBA Group Managing Director and Chief Executive Officer John Gachora said the transaction would position the bank to pursue further growth opportunities across East Africa.

He said NCBA would maintain its established brand and local operations while benefiting from Nedbank’s broader financial capabilities.

“The name is the same, the people are the same, but the ambition and capabilities are tremendously magnified,” Gachora said.

Nedbank Group Chief Executive Jason Quinn said the acquisition marked an important step in the group’s African growth strategy, connecting two established banking platforms across the continent.

He said the partnership would create opportunities for customers and shareholders while supporting increased trade and investment.

Shareholders to receive cash and Nedbank shares

The acquisition attracted significant interest from NCBA shareholders, who tendered 1.316 billion shares during the offer period that closed on July 10, 2026, representing 79.90 per cent of the company’s issued shares.

The level of participation exceeded Nedbank’s targeted 66 per cent stake, prompting excess applications to be scaled back proportionately in line with the offer terms.

Under the transaction arrangements, NCBA shares are scheduled to be suspended from trading on or about October 21 through November 2, 2026, to allow reconciliation of the share register.

The transfer of shares to Nedbank through a block trade on the NSE is scheduled for November 3, with settlement of Nedbank shares and dispatch of cash payments to participating NCBA shareholders also expected to begin on that date.

Despite the change in ownership, NCBA said its headquarters would remain in Nairobi, with its existing leadership, brand, branches, digital platforms and customer-facing operations continuing unchanged.

The transition is expected to provide employees with additional opportunities for professional development, knowledge sharing and career growth through access to a wider African banking network.

The acquisition comes as financial institutions increasingly pursue regional expansion and stronger cross-border capabilities to serve businesses and customers operating across African markets.